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Rooney Publications established the following standard price and costs for a hardcover picture book that the company produces. Materials cost Standard price and variable
Rooney Publications established the following standard price and costs for a hardcover picture book that the company produces. Materials cost Standard price and variable costs Sales price Labor cost Overhead cost Planned fixed costs Manufacturing overhead Selling, general, and administrative costs Selling, general, and administrative. $ 36.50 8.50 4.00 6.00 6.30 $130,000 48,000 Rooney planned to make and sell 32,000 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 31,000 and 33,000 units. Determine the sales and variable cost volume variances, assuming volume is actually 33,000 units. Indicate whether the variances are favorable (F) or unfavorable (U). (Select "None" if there is no effect (i.e., zero variance).)
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