Stuart Company has provided the following Year 2 data.

Budget
Sales	$	516,000
Variable product costs		200,000
Variable selling expense		45,000
Other variable expenses		3,200
Fixed product costs		16,300
Fixed selling expense		23,800
Other fixed expenses		1,200
Interest expense		610
Variances
Sales		7,800	U
Variable product costs		4,200	F
Variable selling expense		1,600	U
Other variable expenses		1,600	U
Fixed product costs		220	F
Fixed selling expense		470	F
Other fixed expenses		160	U
Interest expense		130	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.