The following information is available for Brownstone Products Company for the month of July Master Actual Budget Units 3,800 4, eee Sales revenue $ 54,800 $ 60,000 Variable manufacturing costs 29,680 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 1e, 30e Required: 1. What was the master budget variance for July? Was this variance favorable or unfavorable? 2. Compute the July sales volume variance and the flexible-budget varlance 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 Required: 1 What was the master budget varlance for July? Was this variance favorable or unfavorable? 2. Compute the July sales volume variance and the flexible-budget varlance 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 What was the master budget variance for July? Was this variance favorable or unfavorable? (Indicate the effect of each variance by selecting "F" for Favorable, "U" for Unfavorable, and "None" for no effect (.e., zero variance).) Master budget variance Required 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. (Indicate the effect of each variance by selecting "F for Favorable, "U" for Unfavorable, and "None" for no effect (ie, zero variance).) Flexible-Budget Sales Volume Variance Variance Contribution margin Operating income 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 Flexible budget (a.) (b.) Master Budget 4,000 60,000 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 $ $ 0$ 0 $ 0 $ 0 $ 13,500 10,300 23,800 12,200 $ $ 0 $ 0 $ 0 $ 0 $
