Dunlop Company has provided the following 2018 data:

Budget
Sales $400,000
Variable product costs 163,000
Variable selling expense 40,000
Other variable expenses 3,000
Fixed product costs 10,500
Fixed selling expense 20,000
Other fixed expenses 1,600
Interest expense 650

Variances
Sales 3,200 U
Variable product costs 2,600 F
Variable selling expense 1,250 U
Other variable expenses 600 U
Fixed product costs 110 F
Fixed selling expense 195 F
Other fixed expenses 75 U
Interest expense 50 F

Required

a. Prepare a budgeted and actual income statement for internal use. Separate operating income from net income in the statements.
b. Calculate variances and identify them as favorable (F) or unfavorable (U) by comparing the budgeted and actual amounts determined.

Reliability and validity reliability and validity are two important considerations that must be made with any type of data collection. reliability refers to the ability to consistently produce a given result. in the context of psychological research, this would mean that any instruments or tools used to collect data do so in consistent, reproducible ways. unfortunately, being consistent in measurement does not necessarily mean that you have measured something correctly. to illustrate this concept, consider a kitchen scale that would be used to measure the weight of cereal that you eat in the morning. if the scale is not properly calibrated, it may consistently under- or overestimate the amount of cereal that’s being measured. while the scale is highly reliable in producing consistent results (e.g., the same amount of cereal poured onto the scale produces the same reading each time), those results are incorrect. this is where validity comes into play. validity refers to the extent to which a given instrument or tool accurately measures what it’s supposed to measure. while any valid measure is by necessity reliable, the reverse is not necessarily true. researchers strive to use instruments that are both highly reliable and valid.