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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 3,900 4,000 $55,500 $60,000 20,800 16, eee 14,000 13,700 9,500 8,000 10,900 10,400 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. 3.930 units b. 4,330 units Required 1 Required 2 Required 4 Prepare pro forma budgets for activities within its relevant range of operatia following two output levels: a. 3,930 units. b. 4,330 units. Flexible budget (a.) Flexible budget (b.) Master Budget 4,000 $ 60,000 Units Sales + 16,000 8,000 24,000 36,000 $ 0 $ 0 $ 0 $ $ 0 $ Variable costs: Manufacturing Selling and administrative Total variable costs Contribution margin Fixed costs: Manufacturing Selling and administrative Total fixed costs Operating income 13,700 10,400 24.100 11,900 0 $ $ 0 $ 0 $ $ $ 0

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