Walton Company has provided the following 2018 data:

Budget
Sales	$	505,000
Variable product costs		195,000
Variable selling expense		45,000
Other variable expenses		3,200
Fixed product costs		16,500
Fixed selling expense		23,900
Other fixed expenses		1,700
Interest expense		720
Variances
Sales		8,300	U
Variable product costs		4,900	F
Variable selling expense		1,500	U
Other variable expenses		1,100	U
Fixed product costs		270	F
Fixed selling expense		430	F
Other fixed expenses		170	U
Interest expense		150	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).

Answer is not complete.

WALTON COMPANY
Internal Income Statement for 2018
	Budget	Actual	Variance
Sales	$505,000	$496,700	$8,300	U
Variable expenses:
Product costs	$195,000	$190,100	$4,900	F
Selling expenses	45,000	43,500selected answer incorrect	1,500	U
Other expenses	3,200	2,100selected answer incorrect	1,100	U
Contribution margin	261,800	260,000selected answer incorrect	1,800selected answer incorrect	U
Fixed expenses:
Product costs	$16,500	$16,230	$270	F
Selling expenses	23,900	23,470	430	F
Other expenses	1,700	1,530selected answer incorrect	170	U
Operating income (loss)	219,700	218,770selected answer incorrect	930selected answer incorrect	U
Interest expense	720	150selected answer incorrect	150	F
Net income (loss)	$218,980	$218,620selected answer incorrect	not attempted	U