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

$\backslash$table$[[,],[$Standard price and variable costs,$],[$Sales price,$$2\mathrm{.}30],[$Materials cost$,8\mathrm{.}00],[$Labor cost$,3\mathrm{.}80],[$Overhead cost$,5\mathrm{.}60],[$Selling$,$ general, and administrative costs,$6\mathrm{.}60],[$Planned fixed costs,$],[$Manufacturing overhead,$$127,000],[$Selling$,$ general, and administrative,$47,000]]$

Rooney planned to make and sell $26,000$ 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 $25,000$ and $27,000$ units. Determine the sales and variable cost volume variances, assuming volume is actually $27,000$ units. Indicate whether the variances are favorable $($F$)$ or unfavorable $($U$).($Select "None" if there is no effect $($i$.$e$.,$ zero variance$).)$

$\backslash$table$[[$Number of units,$\backslash$table$[[$Master Budget$],[26,000]],$Flexible Budgets,Volume Variances$],[25,000,27,000],[,,,,|],[$Variable manufacturing costs$],[,,,,],[,,,,],[,,,,],[$P$,,,,],[,,,,],[$Fixed costs$],[$r$,,,,$F$],[,,,,],[,,,,]]$