Exercise $8-1$A $($Algo$)$ Preparing master and flexible budgets LO $8-1$

Stuart Manufacturing Company established the following standard price and cost data.

Sales price

Variable manufacturing cost

Fixed manufacturing cost

Fixed selling and administrative cost

$$8\mathrm{.}60$ per unit

$$3\mathrm{.}00$ per unit

$$2,400$ total

$$600$ total

Stuart planned to produce and sell $2,300$ units. Actual production and sales amounted to $2,400$ 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.

Complete this question by entering your answers in the tabs below.

Required A

Required B

Prepare the pro forma income statement in contribution format that would appear in a master budget.