Please solve it Requireda. Prepare in good form a budgeted and actual income statement for internal use. Separate operating income from net income inthe statements and indicate whether each variance is favorable (F) or unfavorable (U). (Select "None" if there is no effect (l.e., zerovariance).)VERNON COMPANYInternal Income StatementBudgetActualVarianceEffectSalesVariable expensesFixed expenses Vernon Company has provided the following for the year.BudgetSalesVariable product costsVariable selling expenseOther variable expensesFixed product costsFixed selling expenseOther fixed expensesInterest expenseVariancesSalesVariable product costsVariable selling expenseOther variable expensesFixed product costsFixed selling expenseOther fixed expensesInterest expense$502,000185,00048,0002,90016,10023,6001,6007807,900 U4,900 F1,600 U1,300 U320 F420 F120 U150 F

The question is based on the concept of Cost Accounting.

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 (Le., zero variance).) VERNON COMPANY Internal Income Statement Budget Actual Variance Effect Sales Variable expenses