Stuart Manufacturing Company established the following standard price and cost data. Sales price $ 8.80 per unit Variable manufacturing cost $ 3.30 per unit Fixed manufacturing cost $ 2,300 total Fixed selling and administrative cost $ 900 total Stuart planned to produce and sell 2,200 units. Actual production and sales amounted to 2,400 units. Required Prepare the pro forma income statement in contribution format that would appear in a master budget. Prepare the pro forma income statement in contribution format that would appear in a flexible budget.

Pro forma income statement - in a master budget

Sales ($ 8.80×2,200 units)                                                         $19,360

Less Cost of Goods sold

Cost of Goods Manufactured

Variable manufacturing cost ( $ 3.30 × 2,200 units)                 ($7,260)

Contribution                                                                                 $12,100

Less Expenses :

Fixed manufacturing cost                                                          ($ 2,300)

Fixed selling and administrative cost                                          ($ 900)

Net Income                                                                                   $8,900

Pro forma income statement - in a flexible budget

Sales ($ 8.80×2,400 units)                                                          $21,120

Less Cost of Goods sold

Cost of Goods Manufactured

Variable manufacturing cost ( $ 3.30 × 2,400 units)                 ($7,920)

Contribution                                                                                 $13,800

Less Expenses :

Fixed manufacturing cost                                                          ($ 2,300)

Fixed selling and administrative cost                                          ($ 900)

Net Income                                                                                   $10,600

Explanation:

The master budget is adjusted to match the actual level of output. This is known as flexing the budget.

answer; the nav calculated at the market close at 4: 00 pm new york time;