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Problem 15-20A (Algo) Determining sales and variable cost volume variances LO 15-2, 15-3, 15-4 Solomon 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 costa Planned fixed cost Manufacturing overhead Selling, general, and administrative $36.80 8.60 4.40 5.70 6.40 $129,000 45,000 Solomon planned to make and sell 37,000 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 36,000 and 38,000 units. Determine the sales and variable cost volume variances, assuming volume is actually 38,000 units, Indicate whether the variances are favorable (F) or unfavorable (U). (Select "None" if there is no effect (.e., zero variance).) Master Budget Flexible Budgets Volume Variances Number of units 37.000 36,000 38,000 Variable manufacturing costs Fixed costs