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 Materials cost 36.90 8.60 Labor cost 4.40 Overhead cost 6.10 Selling, general, and administrative costs Planned fixed costs 6.50 Manufacturing overhead Selling, general, and administrative $125,000 47,000 Fanning planned to make and sell 32,000 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 31,000 and 33,000 units. Determine the sales and varlable cost volume variances, assuming volume is actually 33,0o0 units. Indicate whether the variances are favorable (F) or unfavorable (U). (Select "None" if there is no effect (i.e., zero variance).) Master Budget Flexible Budgets Volume Variances Number of units 32,000 31,000 33,000 Variable manufacturing costs 0 0 0 Fixed costs S 0 0 0