Problem 15-20A (Algo) Determining sales and variable cost volume variances LO 15-2, 15-3, 15-4 Adams 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 Labor cost Overhead cost Selling, general, and administrative costs Planned fixed costs Manufacturing overhead Selling general, and administrative $36.30 8.80 3.80 6.00 6.20 $131,000 51,000 Adams planned to make and sell 36,000 copies of the book Required: 0.-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 (ie, zero variance).) Master Budget 36.000 Volume Variances Number of units Flexible Budgets 35,000 37.000 Variable manufacturing costs Fixed cost