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

Standard price and variable costs
Sales price	$	36.90
Materials cost		8.40
Labor cost		3.60
Overhead cost		5.70
Selling, general, and administrative costs		6.90
Planned fixed costs
Manufacturing overhead	$	131,000
Selling, general, and administrative		49,000

Assume that Solomon actually produced and sold 27,000 books. The actual sales price and costs incurred follow:

Actual price and variable costs
Sales price	$	35.90
Materials cost		8.60
Labor cost		3.50
Overhead cost		5.75
Selling, general, and administrative costs		6.70
Actual fixed costs
Manufacturing overhead	$	116,000
Selling, general, and administrative		55,000

Required

a. & b. Determine the flexible budget variances and also Indicate whether each variance is favorable (F) or unfavorable (U

\begin{tabular}{|l|l|l|} \hline & \multicolumn{2}{|c|}{ Flexible Budget } \\ \hline Sales revenue & & \\ \hline Variable manufacturing costs & & \\ \hline Materials & & \\ \hline Labor & & \\ \hline Overhead & & \\ \hline Variable selling, general, and administrative costs & & \\ \hline Contribution margin & & \\ \hline Fixed costs & & \\ \hline Manufacturing overhead & & \\ \hline Selling, general, and administrative costs & & \\ \hline Net income & & \\ \hline \end{tabular} \begin{tabular}{|l|l|l|} \hline & \multicolumn{2}{|c|}{ Flexible Budget } \\ \hline Sales revenue & & \\ \hline Variable manufacturing costs & & \\ \hline Materials & & \\ \hline Labor & & \\ \hline Overhead & & \\ \hline Variable selling, general, and administrative costs & & \\ \hline Contribution margin & & \\ \hline Fixed costs & & \\ \hline Manufacturing overhead & & \\ \hline Selling, general, and administrative costs & & \\ \hline Net income & & \\ \hline \end{tabular}