Prepare the pro forma income statement that would appear in the master budget and also flexible budget income statements, assuming production volumes of 26,000 and 28,000 units. Determine the sales and variable cost volume variances, assuming volume is actually 28,000 units. Indicate whether the variances are favorable (F) or unfavorable (U). (Select "None" if there is no effect (i.e., zero variance).) Walton 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 Planned fixed costs Manufacturing overhead Selling, general, and administrative costs Selling, general, and administrative $ 36.80 8.50 3.60 5.50 7.20 $133,000 47,000 Walton planned to make and sell 27,000 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 26,000 and 28,000 units. Determine the sales and variable cost volume variances, assuming volume is actually 28,000 units. Indicate whether the variances are favorable (F) or unfavorable (U). (Select "None" if there is no effect (i.e., zero varlance).) Number of units Sales revenue Variable manufacturing costs Materials Labor Manufacturing overhead Variable selling general, and administrative costs Contribution margin Fixed costs Manufacturing overhead Fixed selling, general, and administrative costs Net income Master Budget Flexible Budgets Volume Variances 27,000 26,000 28,000