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The following information is available for Brownstone Products Company for the month of July: Units Sales revenue Variable manufacturing costs Fixed manufacturing costs Variable selling

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The following information is available for Brownstone Products Company for the month of July: Units Sales revenue Variable manufacturing costs Fixed manufacturing costs Variable selling and administrative expenses Fixed selling and administrative expenses Master Actual Budget 3,900 3,200 $53,900 $60,000 10,300 16,000 12,200 13,600 6,800 8,000 8,300 9,700 Required: 1. What was the total operating income variance for July? (Note: this variance is also called the master (static) budget variance for the period.) Was this variance favorable (F) or unfavorable (U)? 2. Compute the July sales volume variance and the flexible-budget variance for the month, both in terms of contribution 4. Prepare pro forma budgets for activities within its relevant range of operations. Prepare a flexible budget for each of the following two output levels: a. 3,820 units. b.4,220 units. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 4 What was the total onerating income variance for July? (Note: this variance is also called the master (statie budoet variance Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 4 What was the total operating income variance for July? (Note: this variance is also called the master (static) budget varlance for the period.) Was this variance favorable (F) or unfavorable (U)? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (.e., zero variance).) Total oporating Incomo varianco Required Required 2 > Required 1 Required 2 Required 4 Compute the July sales volume variance and the flexible-budget variance for the month, both in terms of contribution margin and in terms of operating income. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (.e., zero variance).) Flexible-Budget Sales Volume Variance Variance Contribution margin Operating income Required 1 Required 4 > Prepare pro forma budgets for activities within its relevant range of operations. Prepare a flexible budget for each of the following two output levels: a. 3,820 units. b. 4,220 units. Show le Flexible Flexible budget (a.) budget (b.) Master Budget 3,200 $ 60,000 cos Units Sales Variable costs: Manufacturing Selling and administrative Total variable costs Contribution margin Fixed costs: Manufacturing Selling and administrative Total fixed costs Operating income 16,000 8,000 24,000 36,000 $ $ 13,600 9,700 23,300 12,700 $ $

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