Walton Publications established the following standard price and costs for a hardcover picture book that the company produces. 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 $36.50 8.30 4.30 5.50 7.00 $129,000 51,000 Walton planned to make and sell 38,000 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 37,000 and 39,000 units. Determine the sales and variable cost volume variances, assuming volume is actually 39,000 units. Indicate whether the variances are favorable (F) or unfavorable (U). (Select "None" If there is no effect (.e. zero variance).) Volume Variances Answer is complete but not entirely correct. Master Budget Flexible Budgets 38,000 37,000 39,000 $ 1,387,000 1,350,500 (1,423,500 $ 32,000 Number of units Sales revenue Variable manufacturing costs Materials Labor Manufacturing overhead Variable selling general, and administrative costs Contribution margin Fixed costs Manufacturing overhead Fixed selling, general, and administrative costs Net income OOO 315,400 163,400 209,000 266,000 433,200 307,100 323,700 159.100 167,700 214,500 259,000 273,000 421,800 444,600 203,500 8,300 4,300 5,500 7.000 11.420 U U U 3 F 0 129,000 51,000 253,200 129,000 51,000 S 241,800 129,000 51,000 $ 264,600 None None 0 $ $ 11,420 F