Exercise 15-6A (Algo) Income statement for internal use LO 15-3 Munoz Company has provided the following for the year. $507,000 200,000 44,000 2,700 15,800 23,300 2,000 780 Budget Sales Variable product costs Variable selling expense Other variable expenses Fixed product costs Fixed selling expense Other fixed expenses Interest expense Variances Sales Variable product costs Variable selling expense Other variable expenses Fixed product costs Fixed selling expense Other fixed expenses Interest expense 8,500 U 4,200 F 2,300 U 1,900 U 300 F 460 F 170 U 170 F Required a. Prepare in good form a budgeted and actual income statement for internal use. Separate operating income from net income in the statements and indicate whether each variance is favorable (F) or unfavorable (U). (Select "None" if there is no effect (i.e., zero variance).) MUNOZ COMPANY Internal Income Statement Actual Variance Effect Budget 507,000 Sales $ $ (8,500) U Variable expenses: Product costs 200,000 44,000 Selling expenses Other expenses 2,700 Contribution margin 260,300 Fixed expenses: Product costs $ 15,800 Selling expenses 23,300 Other expenses 2,000 Operating loss 219,200 0 Interest expense 780 Net loss $ 218,420 0