Acc202 Survey of Accounting: P15-18 Holligan Publications established the following standard price and costs

Acc202 Survey of AccountingProblem 15-18 Determining sales and variable cost volume variancesHolligan Publications established the following standard price and costs for a hardcover picture book that the company produces. Standard price and variable costs: Sales price $37.00 Materials $8.70 Labor $4.30 Overhead $6.10 General, selling and administrative $6.50 Planned fixed costs: Manufacturing 128,000 General, selling and administrative 49,000 Holligan planned to make and sell 30,000 copies of the book. Required: a. Prepare the pro forma income statement that would appear in the master budget.b. Prepare the flexible budget income statements, assuming volumes of 29,000 and 31,000 units. c. Determine the sales and variable cost volume variances, assuming volume is actually 31,000 units. d. Indicate whether the variances are favorable (F) or unfavorable (U). e. Comment on how Holligan could use the variances to evaluate performance.