The master budget at Western Company last period called for sales of 225,000 units at $9 each. The costs were estimated to be $3.75 variable per unit and $225,000 fixed. During the period, actual production and actual sales were 230,000 units. The selling price was $9.10 per unit. Variable costs were $4.50 per unit. Actual fixed costs were $225,000.

Required:

Prepare a profit variance analysis. (Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option.)

Sales revenue Less: Variable costs Contribution margin Less: Fixed costs Operating profits Actual Budget Manufacturing Variances WESTERN COMPANY Profit Variance Analysis Sales Price Variance Flexible Budget Sales Activity Variance Master Budget