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

Standard price and variable costs
Sales price	$	36.70
Materials cost		8.00
Labor cost		4.50
Overhead cost		5.60
Selling, general, and administrative costs		6.50
Planned fixed costs
Manufacturing overhead	$	135,000
Selling, general, and administrative		47,000

Rooney planned to make and sell 24,000 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 23,000 and 25,000 units. Determine the sales and variable cost volume variances, assuming volume is actually 25,000 units. Indicate whether the variances are favorable (F) or unfavorable (U). (Select "None" if there is no effect (i.e., zero variance).)

	Master Budget	Flexible Budgets		Volume Variances
Number of units	24,000	23,000	25,000
Variable manufacturing costs
	0	0	0
Fixed costs
	$0	$0	$0