Thornton Company has provided the following for the year.

Budget
Sales	$	509,000
Variable product costs		186,000
Variable selling expense		40,000
Other variable expenses		3,300
Fixed product costs		15,900
Fixed selling expense		24,000
Other fixed expenses		1,500
Interest expense		700
Variances
Sales		8,000	U
Variable product costs		4,100	F
Variable selling expense		2,100	U
Other variable expenses		1,500	U
Fixed product costs		250	F
Fixed selling expense		400	F
Other fixed expenses		110	U
Interest expense		110	F

Required

1. 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).)

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).)