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Item 3

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

Standard price and variable costs
Sales price	$	36.80
Materials cost		8.10
Labor cost		3.90
Overhead cost		5.50
Selling, general, and administrative costs		6.50
Planned fixed costs
Manufacturing overhead	$	130,000
Selling, general, and administrative		50,000

Assume that Fanning actually produced and sold 29,000 books. The actual sales price and costs incurred follow:

Actual price and variable costs
Sales price	$	35.80
Materials cost		8.30
Labor cost		3.80
Overhead cost		5.55
Selling, general, and administrative costs		6.30
Actual fixed costs
Manufacturing overhead	$	115,000
Selling, general, and administrative		56,000

Required

a. & b. Determine the flexible budget variances and also Indicate whether each variance is favorable (F) or unfavorable (U). (Select "None" if there is no effect (i.e., zero variance).)