Zachary Publications established the following standard price and costs for a hardcover picture book that the company produces.

Zachary planned to make and sell $26,000$ copies of the bodk.

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 $25,000$ and $27,000$ units. Determine the sales and variable cost volume variances, assuming volume is actually $27,000$ units. Indicate whether the variances are favorable $($F$)$ or unfavorable $($U$).$

Note: Select "None" if there is no effect $($i$.$e$.,$ zero variance$).$

$\backslash$table$[[,$Master Budget,,Flexible Budgets,Volume Variances$],[$Number of units,,$26,000,,25,000,,27,000],[x,[,,,,$L$,$in$,$L$],[$Variable manufacturing costs$],[,$I,,,,,,$L$