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Exercise 16-28 (Algo) Sales Activity Variance (LO 16-3) Osage, Inc. manufactures and sells lamps. The company produces only when it receives orders and therefore, has no inventories. The following information is available for the current month Actual (based on Master Budget (based actual orders for on budgeted orders 4sa,eee units) for 480,000 units) Sales revenue $4,486,000 $4,320,000 Less Variable costs Materials 1,680,000 1,680,000 Direct labor 247,000 312, cee Variable overhead 579,800 528,000 Variable marketing and administrative 467,000 480,000 Total variable costs $2.973,800 $3,000,000 Contribution margin $1,512, 280 $1,320.ee Less Fixed costs Manufacturing overhead 628,580 680,000 Marketing 175,000 175,00 Administrative 127,000 105.000 Total fixed costs 3930. see S882.ee Operating profits $ 581,700 $ 448,eee Required: Prepare a sales activity variance analysis for Osage. Inc. (Do not round Intermediate calculations. Indicate the effect of each varlance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select elther option.) OSAGE, INC Sales Activity Variance Flexible Budget Sales Activity Variance Master Budget Sales revenue Variable costs Materials Less Fixed costs Manufacturing overhead Marketing Administrative Total fixed costs Operating profits 628,500 175,000 127,000 $930500 $581,700 600,000 175,000 105,000 $ 88e eee $ 440,000 Required: Prepare a sales activity variance analysis for Osage, Inc. (Do not round Intermediate calculations. Indicate the effect of each varlance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select elther option.) OSAGE INC Sales Activity Variance Flexible Budget Sales Activity Variance Master Budget Sales revenue Variable costs Materials Direct labor 5 $ $ $ 0 Variable overhead Variable marketing and administrative Total variable costs Contribution margin Forced costs Manufacturing overhead Marketing Administrative Totalfixed costs Operating profits $ $ 5 3