Determining sales and variable cost volume variances Holligan Publications established the following standard price and costs for a hardcover picture…

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:$37.008.704.306.10General, selling, and administrative 6.50Planned fixed costs:$128,000 General, selling, and administrative $49,000Holligan planned to make and sell 30,000 copies of the book.a. Prepare the pro forma income statement that would appear in the master budget.b. Prepare 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 unitsd. Indicate whether the variances are favorable (F) or unfavorable (U).e. Comment on how Holligan could use the variance to evaluate performance.

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