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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. 3,790 units. b. 4,190 units. Units Sales Variable costs: Manufacturing Selling and administrative Total variable costs Contribution margin Fixed costs: Manufacturing Selling and administrative Total fixed costs Flexible budget Flexible budget (a.) (b.) Master Budget 4,000 60,000 $ $ $ 16,000 8,000 24,000 36,000 13,300 9,400 22,700 Show less A

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. 3,790 units. b. 4,190 units. Units Sales Variable costs: Manufacturing Selling and administrative Total variable costs Contribution margin Fixed costs: Manufacturing Selling and administrative Total fixed costs Flexible budget Flexible budget (a.) (b.) Master Budget 4,000 60,000 $ $ $ 16,000 8,000 24,000 36,000 13,300 9,400 22,700 Show less A

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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).) Contribution margin. Operating income Required 1 Required 2 Show Transcribed Text a. 3,790 units. b. 4,190 units. Units Sales Variable costs: Manufacturing Selling and administrative Prepare pro-forma budgets for activities within its relevant range of operations. Prepare a flexible budget for each of the following two output levels: Total variable costs Contribution margin Fixed costs: Flexible-Budget Variance Manufacturing Selling and administrative Total fixed costs Operating income Sales Volume Variance Required 4 Flexible budget Flexible budget Master Budget (a.) (b.) $ J $ $ $ $ 4.000 60,000 16,000 8,000 24,000 36,000 13,300 9,400 22,700 13,300 Show less A
Transcribed Image Text: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).) Contribution margin. Operating income Required 1 Required 2 Show Transcribed Text a. 3,790 units. b. 4,190 units. Units Sales Variable costs: Manufacturing Selling and administrative Prepare pro-forma budgets for activities within its relevant range of operations. Prepare a flexible budget for each of the following two output levels: Total variable costs Contribution margin Fixed costs: Flexible-Budget Variance Manufacturing Selling and administrative Total fixed costs Operating income Sales Volume Variance Required 4 Flexible budget Flexible budget Master Budget (a.) (b.) $ J $ $ $ $ 4.000 60,000 16,000 8,000 24,000 36,000 13,300 9,400 22,700 13,300 Show less A
The following information is available for Brownstone Products Company for the month of July: Master Budget 4,000 $ 60,000 16,000 Units Sales revenue Variable manufacturing costs Fixed manufacturing costs Variable selling and administrative expenses Fixed selling and administrative expenses Actual 3,800 $ 53,600 19,400 14,300 8,100 9,500 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. 3,790 units. b. 4,190 units. Show Transcribed Text Required 1 Required 2 Required 4 Complete this question by entering your answers in the tabs below. Co 13,300 8,000 9,400 What was the master budget variance for July? Was this variance favorable or unfavorable? (Indicate the effect of each variance by selecting "F" for Favorable, "U" for Unfavorable, and "None" for no effect (i.e., zero variance).) Master budget variance
Transcribed Image Text:The following information is available for Brownstone Products Company for the month of July: Master Budget 4,000 $ 60,000 16,000 Units Sales revenue Variable manufacturing costs Fixed manufacturing costs Variable selling and administrative expenses Fixed selling and administrative expenses Actual 3,800 $ 53,600 19,400 14,300 8,100 9,500 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. 3,790 units. b. 4,190 units. Show Transcribed Text Required 1 Required 2 Required 4 Complete this question by entering your answers in the tabs below. Co 13,300 8,000 9,400 What was the master budget variance for July? Was this variance favorable or unfavorable? (Indicate the effect of each variance by selecting "F" for Favorable, "U" for Unfavorable, and "None" for no effect (i.e., zero variance).) Master budget variance
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