The following information is available for Brownstone Products Company for the month of July:| | Actual | Master Budget ||----------------------|--------|---------------|| Units | 3,800 | 4,000 || Sales revenue | $60,600| $60,000 || Variable manufacturing costs | 21,000 | 16,000 || Fixed manufacturing costs | 14,000 | 13,900 || Variable selling and administrative expenses | 9,700 | 8,000 || Fixed selling and administrative expenses | 11,100 | 10,500 |**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.3. 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.

Budgets are often created and updated on a regular basis and provide an estimation of income and…

The following information is available for Brownstone Products Company for the month of July: Master Budget 4,000 $ 60,000 16,000 13,900 8,000 10,500 Units Actual 3,800 Sales revenue $ 60,600 Variable manufacturing costs 21,000 Fixed manufacturing costs 14,000 Wariable selling and administrative expenses 9,700 Fixed selling and administrative expenses 11,100 Required:

The following information is available for Brownstone Products Company for the month of July: Master Budget 4,000 $ 60,000 16,000 13,900 8,000 10,500 Units Actual 3,800 Sales revenue $ 60,600 Variable manufacturing costs 21,000 Fixed manufacturing costs 14,000 Wariable selling and administrative expenses 9,700 Fixed selling and administrative expenses 11,100 Required:

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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