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, 600 $60,000 21,000 16,000 14,000 13,900 9,700 8,000 11,100 10,500 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. 3,950 units. b. 4,350 units. 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 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 > 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. 3,950 units. b. 4,350 units. Show less Flexible budget (a.) Flexible budget (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 $ $ 13,900 10.500 24,400 11,600 | $ $ 0 0 $ $ 0 0 $ $
