Campbell Publications established the following standard price and costs for a hardcover picture book that the company produces.

Standard price and variable costs

Sales price $ $36\mathrm{.}30$

Materials cost $8\mathrm{.}80$

Labor cost $4\mathrm{.}10$

Overhead cost $5\mathrm{.}80$

Selling, general, and administrative costs $7\mathrm{.}00$

Planned fixed costs

Manufacturing overhead $ $130,000$

Selling, general, and administrative $53,000$

Campbell planned to make and sell $33,000$ copies of the book.

Required:

a$.-$ d$.$ Prepare the pro forma income statement that would appear in the master budget and also flexible budget income statements, assuming production volumes of $32,000$ and $34,000$ units. Determine the sales and variable cost volume variances, assuming volume is actually $34,000$ units. Indicate whether the variances are favorable $($F$)$ or unfavorable $($U$).($Select "None" if there is no effect $($i$.$e$.,$ zero variance$).)$