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

Munoz 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{.}80$ per unit

$$3\mathrm{.}30$ per unit

$$2,600$ total

$$700$ total

Munoz planned to produce and sell $2,400$ units. Actual production and sales amounted to $2,600$ 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.