Problem 15-20A (Algo) Determining sales and variable cost volume variances LO 15-2, 15-3, 15-4 Gibson Publicalions 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 adninistrative costs Planned fixed costs Manufacturing overhead Selling, general, and administrative $36.00 8.90 3.50 5.80 6.80 $129,000 51,000 Gibson planned to make and sell 38,000 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 37,000 and 39,000 units. Determine the sales and variable cost volume variances, assuming volume is actually 39,000 units. Indicate whether the variances are favorable (F) or unfavorable (U). (Select "None" if there is no effect i.e., zero variance).) Volume Variances Master Budget 38,000 Flexible Budgets 37,000 39,000 Number of units Variable manufacturing costs Fixed costs