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

Standard price and variable costs
Sales price	$	36.30
Materials cost		8.80
Labor cost		4.20
Overhead cost		6.10
Selling, general, and administrative costs		6.50
Planned fixed costs
Manufacturing overhead	$	130,000
Selling, general, and administrative		52,000

Assume that Gibson actually produced and sold 36,000 books. The actual sales price and costs incurred follow:

Actual price and variable costs
Sales price	$	35.30
Materials cost		9.00
Labor cost		4.10
Overhead cost		6.15
Selling, general, and administrative costs		6.30
Actual fixed costs
Manufacturing overhead	$	115,000
Selling, general, and administrative		58,000

Required

a. & b. Determine the flexible budget variances and also indicate the effect of each variance by selecting favorable (F) or unfavorable (U). (Select "None" if there is no effect (i.e., zero variance).)

Flexible Budget Variances
Sales revenue	$36,000	U
Variable manufacturing costs
Materials	7,200	U
Labor	3,600	F
Overhead	1,800	U
Selling, general,and administrative costs	7,200	F
Contribution margin		U
Fixed costs
Manufacturing overhead	15,000	F
Selling, general, and administrative costs	6,000	U
Net income		U