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Please see my attached accounting questions- thank you for your help

Chapter 15 1. Curtis Salter, the president of Kasimer Computer Services, needs your help. He wonders about the potential effects on the firm’s net income if he changes the service rate that the firm charges its customers. The following basic data pertain to fiscal year 2015. Standard rate and variable costs Service rate per hour $ 75.00 Labor cost 40.00 Overhead cost 7.20 Selling, general, and administrative cost 4.30 Expected fixed costs Facility maintenance $400,000 Selling, general, and administrative 150,000 a. Prepare the pro forma income statement that would appear in the master budget if the firm expects to provide 30,000 hours of services in 2015. b. A marketing consultant suggests to Mr. Salter that the service rate may affect the number of service hours that the firm can achieve. According to the consultant’s analysis, if Kasimer charges customers $70 per hour, the firm can achieve 38,000 hours of services. Prepare a flexible budget using the consultant’s assumption.
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c. The same consultant also suggests that if the firm raises its rate to $80 per hour, the number of service hours will decline to 25,000. Prepare a flexible budget using the new assumption. 2. Lloyd Publications established the following standard price and costs for a hardcover picture book that the company produces. 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 29,000 and 31,000 units. Determine the sales and variable cost volume variances, assuming volume is actually 31,000 units. Indicate whether the variances are favorable (F) or unfavorable (U). (Select "None" if there is no effect (i.e., zero variance).)
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Subject: Accounting, Business

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