Benson Publications established the following standard price and costs for a hardcover picture book that the company produces: Standard price and variable costs Sales price Materials cost Labor cost Overhead cost Selling, general, and administrative costs Planned fixed costs Manufacturing overhead Selling, general, and administrative Benson planned to make and sell 38,000 copies of the book. Number of units Required: a. to d. Prepare the pro forma income statement that would appear in the master budget and also flexible budget income statements, assuming production volumes of 37,000 and 39,000 units. Determine the sales and variable cost volume variances, assuming volume is actually 39,000 units. Indicate whether the variances are favorable or unfavorable. Note: Select "None" if there is no effect (i.e., zero variance). Variable manufacturing costs $36.90 8.10 3.90 5.90 6.90 Master Budget 38,000 $ 127,000 48,000 Flexible Budgets 37,000 39,000 Volume Variances

Benson Publications established the following standard price and costs for a hardcover picture book that the company produces: Standard price and variable costs Sales price Materials cost Labor cost Overhead cost Selling, general, and administrative costs Planned fixed costs Manufacturing overhead Selling, general, and administrative Benson planned to make and sell 38,000 copies of the book. Required: $ 36.90 8.10 3.90 5.90 6.90 $ 127,000 48,000 a. to d. Prepare the pro forma income statement that would appear in the master budget and also flexible budget income statements, assuming production volumes of 37,000 and 39,000 units. Determine the sales and variable cost volume variances, assuming volume is actually 39,000 units. Indicate whether the variances are favorable or unfavorable. Note: Select "None" if there is no effect (i.e., zero variance). Number of units Variable manufacturing costs Master Budget Flexible Budgets Volume Variances 38,000 37.000 39.000