Question: Preparing master and flexible budgets Sexton Manufacturing Company established the following standard price and cost data. Sexton planned to produce and sell 2,000 units. Actual

Preparing master and flexible budgets Sexton Manufacturing Company established the following standard price and cost data.

Sexton planned to produce and sell 2,000 units. Actual production and sales amounted to 2,200 units.
Required
a. Prepare the pro forma income statement in contribution format that would appear in a master budget.
b. Prepare the pro forma income statement in contribution format that would appear in a flexible budget.

Sales price Variable manufacturing cost Fixed manufacturing cost Fixed selling and administrative cost $8.00 per unit $4 per unit $3,000 total $1,000 total

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