Stuart Company has provided the following for the year:

a. Prepare in good form a budgeted and actual income statement for internal use. Separate operating income from net income in the statements and indicate whether each variance is favorable (F) or unfavorable (U). (Select "None" if there is no effect (i.e., zero variance).)

BudgetSalesVariableproductcostsVariablesellingexpenseOthervariableexpensesFixedproductcostsFixedsellingexpenseOtherfixedexpensesInterestexpenseVariancesSalesVariableproductcostsVariablesellingexpenseOthervariableexpensesFixedproductcostsFixedsellingexpenseOtherfixedexpensesInterestexpense$513,000185,00046,0003,30016,40024,1001,4007007,900U4,500F1,700U1,200U290F470F190U150F STUART COMPANY Internal Income Statement