The following information is available for Brownstone Products Company for the month of July:

	Actual			Master Budget
Units		3,800			4,000
Sales revenue	$	54,800		$	60,000
Variable manufacturing costs		20,600			16,000
Fixed manufacturing costs		13,800			13,500
Variable selling and administrative expenses		9,300			8,000
Fixed selling and administrative expenses		10,700			10,300

Required:

2. 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.

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. 3,910 units.

b. 4,310 units.

Complete this question by entering your answers in the tabs below. 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 (i.e., zero variance).) Flexible-Budget Variance Sales Volume Variance Contribution margin Operating income Complete this question by entering your answers in the tabs below. Required 1 Required 2 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. 3,910 units. b. 4,310 units. Show less Flexible budget (a.) 3,9101 Flexible budget (b.) 4,310 Master Budget 4,000 Units $ 60,000 16,000 8,000 $ 0 0 $ Sales Variable costs: Manufacturing Selling and administrative Total variable costs Contribution margin Fixed costs: Manufacturing Selling and administrative Total fixed costs Operating income $ $ 24,000 36,000 $ 0 0 $ 13,500 10,300 23,800 12,200 $ 0 $ 0 $ $ 0 $ 0 $