ications established the following stenderd price and costs for a hardcover picture book that the company produces Standard price and variable costs Sales price Materials cost Labor cost Overhead cost selling, general, and administrative costs $ 36.70 8.20 4.20 5.90 6.40 Planned fixed costs Manufacturing overhead Selling, general, and administrative $125,000 53,ee0 Walton planned to make and sell 27000 copies of the book. Required: a. - d. Prepare the pro forma income statement that would appeor in the master budget and also flexible budget income statements assuming production volumes of 26,000 and 28,000 units. Determine the sales and variable cost volume variances, assuming volume is actually 28,000 units. Indicate whether the variances are favorable (F) or unfavorable (U). (Select "None" if there is no effect.e. zero variance).) Master BudgetFlexible Budgets Volume Varlances Number of units 27,00026,00028.000 Vaniable manufacturing costs Fixed costs