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

Standard price and variable costs
Sales price	$	90.00
Materials cost		18.00
Labor cost		9.00
Overhead cost		12.60
Selling, general, and administrative costs		14.40
Planned fixed costs
Manufacturing overhead	$	270,000
Selling, general, and administrative		108,000

Narcisco planned to make and sell 30,000 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 29,000 and 31,000 units. Determine the sales and variable cost volume variances, assuming volume is actually 31,000 units. Indicate whether the variances are favorable (F) or unfavorable (U). (Select "None" if there is no effect (i.e., zero variance).)