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

Standard price and variable costs

Sales price $ 36.70

Materials cost 8.20

Labor cost 3.80

Overhead cost 6.10

Selling, general, and administrative costs 6.90

Planned fixed costs

Manufacturing overhead $ 133,000

Selling, general, and administrative 47,000

Fanning planned to make and sell 35,000 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 34,000 and 36,000 units. Determine the sales and variable cost volume variances, assuming volume is actually 36,000 units. Indicate whether the variances are favorable (F) or unfavorable (U). (Select "None" if there is no effect (i.e., zero variance).)

Master budget volume: 35,000