Rooney Company has provided the following for the year.

Budget Sales$514,000 Variable product costs 190,000 Variable selling expense 49,000 Other variable expenses 2,700 Fixed product costs 16,300 Fixed selling expense 23,600 Other fixed expenses 1,300 Interest expense 730 Variances Sales 8,200UVariable product costs 4,400FVariable selling expense 1,800UOther variable expenses 1,300UFixed product costs 240FFixed selling expense 430FOther fixed expenses 100UInterest expense 140F

Required

1. a. Prepare in good form a budgeted and actual income statement for internal use. Separate operating income from net income in the statements and indicate whether each variance is favorable (F) or unfavorable (U). (Select "None" if there is no effect (i.e., zero variance).)