Refer to the information in Exercise 16-34. The following is the actual income statement (in thousands of dollars) for the year.

Sales revenue ................................$7,238
Less variable costs
Direct materials .................................748
Direct labor .....................................1,010
Variable overhead .............................930
Total variable costs ......................$2,688
Contribution margin ...................$4,550
Less fixed costs
Fixed manufacturing overhead ...1,050
Non-manufacturing costs ............1,230
Total fixed costs ..........................$2,280
Operating profit ..........................$2,270

Required
Prepare a profit variance analysis like the one in Exhibit 16.5.

Exercise 16-34

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н (1) (2) (3) (4) (5) Flexible Budget (bas ed on actual activity of 80,000 units) $ 800,000 (6) (7) Master Budget (based on planned activity of 100,000 units) $ 1,000,000 Actual (based on actual activity of 80,000 unit s) Marketing and Administrative Variances Sales Activity Variance $ 200,000 U Sales Price Manufacturing Variances Variance $ 40,000 F Sales revenue Less Variable costs Variable manufacturing costs Variable selling and administrative Contribution margin $ 840,000 76,000 F 18,000 F $ 106,000 U 380,000 329,680 $ 25,680 U 304,000 $ 4,000 F $ 4,000 F 68,000 72,000 90,000 $ 530,000 $ 25,680 U $ 40,000 F $ 424,000 $ 442,320 Fixed costs Fixed manufacturing overhead 200,000 140,000 10 195,500 132,320 $ 114,500 4,500 F 200,000 -0- --0- 11 Fixed selling and administrative costs 12 Profit 13 7,680 F 140,000 $ 84,000 $ 21,180 U $11,680 F $ 40,000 F $ 106,000 U $ 190,000 14 The individual cost variances are shown in Exhibit 16.11. 15