Stuart Company has provided the following Year 2 data.

Budget
Sales	$	515,000
Variable product costs		201,000
Variable selling expense		48,000
Other variable expenses		3,000
Fixed product costs		16,300
Fixed selling expense		23,800
Other fixed expenses		1,900
Interest expense		780
Variances
Sales		7,600	U
Variable product costs		4,800	F
Variable selling expense		1,600	U
Other variable expenses		1,800	U
Fixed product costs		310	F
Fixed selling expense		410	F
Other fixed expenses		190	U
Interest expense		150	F

Required

1. a. & b. Prepare in good form a budgeted and actual income statement for internal use. Separate operating income from net income in the statements.