Homework answers / question archive / 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 3,200 $54,700 $60,000 10,700 16,000 12,600 13,400 7,200 8,000 8,600 10,250 Required: 1

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 3,200 $54,700 $60,000 10,700 16,000 12,600 13,400 7,200 8,000 8,600 10,250 Required: 1

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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 3,200 $54,700 $60,000 10,700 16,000 12,600 13,400 7,200 8,000 8,600 10,250 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. 3,900 units. b. 4,300 units. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 4 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)? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).) Total operating income variance $ 13,125F
Complete this question by entering your answers in the tabs below. 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).) Flexible-Budget Variance Sales Volume Variance Contribution margin Operating income $ 4,625 U $ (3,250) F
Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 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. 3,900 units. b. 4,300 units. : Show lessA Flexible budget (a.) Flexible budget (b.) Master Budget 3,200 $ 60,000 16,000 8,000 24,000 36,000 $ 0 $ 0 Units Sales Variable costs: Manufacturing Selling and administrative Total variable costs Contribution margin Fixed costs: Manufacturing Selling and administrative Total fixed costs Operating income $ $ 0 $ 0 $ 13,400 10,250 23,650 12,350 $ 0 0 $ $ $ $ 0 0 $