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 3,800 4,000 $60,300 $60,000 20,200 16,000 14,000 13,100 8,900 8,000 8,500 10,100 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 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. 3,870 units. b. 4,270 units. 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 variance 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 (i.e., zero variance).) Total operating income variance 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 Required 1 Required 2 Required 4 Prepare pro forma budgets for activities within its relevant range of oper following two output levels: a. 3,870 units. b. 4,270 units. Flexible budget (a.) Flexible budget (b.) Units Master Budget 4,000 $ 60,000|| Sales Variable costs: Manufacturing Selling and administrative Total variable costs 16,000 8,000 24,000 36,000 | $ | $ Contribution margin Fixed costs: Manufacturing Selling and administrative Total fixed costs Operating income 13,100 10,100 23,200 12,800 $ $