me following information is available for Brownstone Products Company for the month of July Master Budget Units Sales revenue Variable manufacturing costs Fixed manufacturing costs Variable selling and administrative expenses Fixed selling and administrative expenses a. 3,870 units. b. 4,270 units. Actual 3,800 $ 60,300 Contribution margin Operating income Required: 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 each of the following two output levels: Flexible-Budget Variance 20,200 14,000 Complete this question by entering your answers in the tabs below. 8,900 8,500 Sales Volume 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 contribut and in terms of operating income. (Indicate the effect of each variance by selecting "F" for Favorable, "U" for Unfa "None" for no effect (i.e., zero variance).) 4,000 $ 60,000 16,000 13,100 8,000. 10,100
me following information is available for Brownstone Products Company for the month of July Master Budget Units Sales revenue Variable manufacturing costs Fixed manufacturing costs Variable selling and administrative expenses Fixed selling and administrative expenses a. 3,870 units. b. 4,270 units. Actual 3,800 $ 60,300 Contribution margin Operating income Required: 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 each of the following two output levels: Flexible-Budget Variance 20,200 14,000 Complete this question by entering your answers in the tabs below. 8,900 8,500 Sales Volume 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 contribut and in terms of operating income. (Indicate the effect of each variance by selecting "F" for Favorable, "U" for Unfa "None" for no effect (i.e., zero variance).) 4,000 $ 60,000 16,000 13,100 8,000. 10,100
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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Transcribed Image Text: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
Contribution margin
Operating income
Actual
3,800
$ 60,300
Complete this question by entering your answers in the tabs below.
Flexible-Budget
Variance
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. 3,870 units.
b. 4,270 units.
< Required 1
20,200
14,000
8,900
8,500
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
and in terms of operating income. (Indicate the effect of each variance by selecting "F" for Favorable, "U" for Unfavora
"None" for no effect (i.e., zero variance).)
Sales Volume
Variance
Master
Budget
4,000
$ 60,000
16,000
13,100
8,000
10,100
Required 4 >
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