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

$1$

points

$03$:$01$:$06$

References

Standard price and variable costs

Sales price

Materials cost

Labor cost

Overhead cost

Selling, general, and administrative costs

Planned fixed costs

Manufacturing overhead

Selling, general, and administrative

$$130,000$

$50,000$

Stuart planned to make and sell $40,000$ 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 $39,000$ and $41,000$ units. Determine the sales and variable cost volume variances, assuming volume is actually $41,000$ units. Indicate whether the variances are favorable $($F$)$ or unfavorable $($U$).($Select "None" if there is no effect $($i$.$e$.,$ zero variance$).)$