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 Labor cost Materials cost Overhead cost Planned fixed costs Manufacturing overhead $ 36.10 8.40 3.90 6.00 6.80 $126,000 54,000 Selling, general, and administrative coats. Selling, general, and administrative. Gibson planned to make and sell 36,000 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 35,000 and 37,000 units. Determine the sales and variable cost volume variances, assuming volume is actually 37,000 units. Indicate whether the variances are favorable (F) or unfavorable (U). (Select "None" if there is no effect (i.e.. zero variance).) Number of units Variable manufacturing costs Fixed costs Master Budget 36,000 Flexible Budgets 35,000 37,000 0 0 Volume Variances