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

Standard price and variable costs

Sales price

$\backslash$table$[[$Materials cost$,36\mathrm{.}60]]$

Labor cost $3\mathrm{.}90$

Overhead cost $6\mathrm{.}10$

Selling, general, and administrative costs $6\mathrm{.}80$

Planned fixed costs

Manufacturing overhead $$133,000$

Selling, general, and administrative $45,000$

Rundle planned to make and sell $35,000$ 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 $34,000$ and $36,000$ units. Determine the sales and variable cost volume variances, assuming volume

is actually $36,000$ units. Indicate whether the variances are favorable $(F)$ or unfavorable $($U$).($Select "None" if there is no effect $($i$.$e$.,$

zero variance$).)$