Exercise 15-6A (Algo) Income statement for internal use LO 15-3 Vernon Company has provided the following for the year. Budget Sales Variable product costs Variable selling expense Other variable expenses Fixed product costs Fixed selling expense Other fixed expenses Interest expense Variances $501,000 202,000 - 42,000 2,800 16,500 24,200 1,600 780 Sales 8,500 U Variable product costs 4,900 F Variable selling expense 2,500 U Other variable expenses 1,900 U Fixed product costs 290 F Fixed selling expense Other fixed expenses Interest expense 420 F 170 U 120 F Required a. 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 (U). (Select "None" if there is no effect (i.e., zero variance).) Sales Variable expenses: Fixed expenses: VERNON COMPANY Internal Income Statement Budget Actual Variance Effect