Vernon Company has provided the following 2018 data: Budget Sales $520,000 196,000 44,000 Variable product costs Variable selling expense Other variable expenses Fixed product costs Fixed selling expense Other fixed expenses Interest expense 3,400 16,500 23,500 2,200 680 Variances Sales Variable product costs Variable selling expense Other variable expenses Fixed product cos Fixed selling expense Other fixed expenses Interest expense 8,000 U 4.600 F 1,700 U 1,800 U 270 F 450 F 170 U 120 F Required a. & b. Prepare a budgeted and actual income statement for internal use. Separate operating income from net income in the statements. Calculate variances and identify them as favorable (F) or unfavorable (U) by comparing the budgeted and actual amounts determined. (Select "None" if there is no effect (i.e., zero variance).) DUNLOP COMPANY Internal Income Statement for 2018 Budget Actual Variance Effect Sales Variable expenses: Other fixed expenses Interest expense 170 U 120 F Required a. & b. Prepare a budgeted and actual income statement for internal use. Separate operating income from net income in the statements. Calculate variances and identify them as favorable (F) or unfavorable (U) by comparing the budgeted and actual amounts determined. (Select "None" if there is no effect (l.e., zero variance).) DUNLOP COMPANY Internal Income Statement for 2018 Budget Actual Variance Effect Sales Variable expenses: Fixed expenses