ZACHARY COMPANY Internal Income Statement Budget Actual Variance Effect Sales Variable expenses: Fixed expenses

Zachary Company has provided the following for the year. Budget Sales Variable product costs Vanable selling expense Other variable expenses Fixed product costs Fixed selling expense Other fixed expenses Interest expense Van ances Sales Variable product costs Vanable selling expense Other variable expenses Fixed product costs Fixed selling expense Other fixed expenses Interest expense Required s 520.000 186.000 3200 16.100 24.000 l:soo 7_goo u 4: 700 F 2.100 U l:goo U 2SO F 420 F 150 U 160 F e. 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 (Select "None" if there is no effect (i.e., zero variance).)