Thornton Publications established the following standard price and costs for a hardcover picture book that the company produces Standard price and variable conta Sales price Materials cost Tabor coat Overhead cost Selling, general, and administrative costs Planned fixed costs Manufacturing overhead Selling, general, and administrative $36.90 9.00 4.40 6.00 6.70 $ 132,000 46,000 Thornton planned to make and sell 32,000 coples 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 31,000 and 33,000 units. Determine the sales and variable cost volume variances, assuming volume is actually 33,000 units. Indicate whether the variances are favorable (F) or unfavorable (U). (Select "None" if there is no effect (l... zero variance).) Volume Variances Master Budget 32,000 Flexible Budgets 31,000 33.000 Number of units Variable manufacturing costs 0 0 Fixed cost Salew price Materials cast Labor cost Overhead cost Selling, general, and administrative conta Planned fixed costs Manufacturing overhead Selling, general, and administrative 36.90 9.00 4.40 6.00 6.70 $132,000 46,000 Thornton planned to make and sell 32,000 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 31,000 and 33,000 units. Determine the sales and variable cost volume variances, assuming volume is actually 33,000 units. Indicate whether the variances are favorable (F) or unfavorable (U). (Select "None" If there is no effect (l.e., zero variance).) Master Budget 32,000 Number of units Flexible Budgets 31,000 33,000 Volume Variances Variable manufacturing costs 0 Fixed costs $ $ $ 0 M Number of units Variable manufacturing costs Fixed selling, general, and administrative costs Labor Manufacturing overhead Materials $ udget and also flexible budget income statements, nd variable cost volume variances, assuming volume Srable (U). (Select "None" if there is no effect (i.e., Volume Variances exible Budgets 1,000 33,000 F F None U 0 GA 0
