Performance Evaluation in Service Industries: Rock City Insurance Company estimates that its overhead costs for policy administration should cost $72 for each new policy obtained and $2 per year for each $ 1 ,000 face amount of insurance outstanding. The company set a budget of selling 5 ,000 new policies during the coming period. In addition, the company estimated that the total face amount of insurance outstanding for the period would equal $10,800,000. During the period, actual costs related to new policies amounted to $358,400. A total of 4,800 new policies were sold. The cost of maintaining existing policies was $23,200. Had these costs been incurred at the same prices as were in effect when the budget was prepared, the costs would have been $22,900; however, some costs changed. Also, there was $12,100,000 in policies outstanding during the period.

Required: Prepare a schedule to show the differences between master budget and actual costs for this operation.