The results for July for Brahms & Sons follow:

	Actual (based on actual sales of 62,400 units)						Master Budget (based on budgeted sales of 52,000 units)
Sales revenues		$	450,000					$	460,000
Less
Variable costs
Direct material			56,800						46,000
Direct labor			45,900						55,000
Variable overhead			54,350						55,000
Marketing			20,450						20,000
Administration			18,500						20,000
Total variable costs		$	196,000					$	196,000
Contribution margin		$	254,000					$	264,000
Less
Fixed costs
Manufacturing			90,600						88,400
Marketing			23,800						20,800
Administration			79,400					$	78,000
Total fixed costs		$	193,800					$	187,200
Operating profits		$	60,200					$	76,800

Required:

Prepare a flexible budget for Brahms & Sons for July.

BRAHMS&SONS Flexible Budget Sales revenue Variable costs: Manufacturing costs Direct material Direct labor Variable overhead Marketing Administration Total variable costs Contribution margin Fixed costs: Manufacturing Marketing Administration Total fixed costs Operating profits