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

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

$\backslash$table$[[$Sales price,$$8\mathrm{.}70$ per unit$],[$Variable manufacturing cost,$$3\mathrm{.}90$ per unit$],[$Fixed manufacturing cost,$$2,400$ total$],[$Fixed selling and administrative cost,$$900$ total$]]$

Zachary planned to produce and sell $2,900$ units. Actual production and sales amounted to $3,000$ 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

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

$.$ZACHARY MANUFACTURING COMPANY

Pro Forma Income Statement

Master Budget

$2,900$ Units

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