The following information is available for Brownstone Products Company for the month of July
Actual Master Budget
Units 3,800 4,000
Sales revenue $53,200 $60,000
Variable manufacturing costs 19,000 16,000
Fixed manufacturing costs 16,000 15,000
Variable selling and administrative expenses 7,700 8,000
Fixed selling and administrative expenses 10,000 9,000
1. Set up a spreadsheet to compute the July sales volume variance and the flexible-budget variance for the month in terms of both contribution margin and operating income
2. Create an electronic spreadsheet that will allow the firm to prepare pro forma budgets for activities within the relevant range of operations and prepare flexible budgets when sales are:
a. 3,750 units
b. 4,150 units
Your tutorial gives you a spreadsheet to tease out the volume variances and ...
Your tutorial gives you a spreadsheet to tease out the volume variances and the flexible budget variances as well as two pro forma contribution margin income statements at the two desired levels. You can change the volume in units and the spreadsheet will update (yellow cells). Two references are provided.