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

	Actual	Master Budget
Units	3,900	4,000
Sales revenue	$ 60,400	$ 60,000
Variable manufacturing costs	20,400	16,000
Fixed manufacturing costs	14,200	13,300
Variable selling and administrative expenses	9,100	8,000
Fixed selling and administrative expenses	10,500	10,200

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 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. 3,890 units.

b. 4,290 units.

What was the master budget variance for July? Was this variance fay variance by selecting " F " for Favorable, "U" for Unfavorable, and "No Compute the July sales volume variance and the flexible-budget variance for th and in terms of operating income. (Indicate the effect of each variance by sele "None" for no effect (i.e., zero variance).) Prepare pro-forma budgets for activities within its relevant range of operations. Prepare a flex following two output levels: a. 3,890 units. b. 4,290 units