Exercise 8-3A Preparing master and flexible budgets [LO 1]

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

Sales price	$	8.80	per unit
Variable manufacturing cost	$	3.60	per unit
Fixed manufacturing cost	$	2,900	total
Fixed selling and administrative cost	$	700	total

Sexton 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.(Amounts to be deducted should be indicated with a minus sign. Omit the "$" sign in your response.)

b.	Prepare the pro forma income statement in contribution format that would appear in a flexible budget.(Amounts to be deducted should be indicated with a minus sign. Omit the "$" sign in your response.)