692 (LO 16-4) Required Prepare a flexible budget for Paynesville for the year. 16-35. Profit Variance Analysis Refer to the information in Exercise 16-34. The following is the actual income statement (in thou- sands of dollars) for the year. (LO 16-5) Sales revenue. Less variable costs.. Direct materials Direct labor.... Variable overhead $7,238 748 1,010 930 $2,688 Total variable costs Contribution margin.. Less fixed costs Fixed manufacturing overhead Non-manufacturing costs. Total fixed costs. Operating profit. $4,550 1,050 1,230 $2,280 $2,270 Required Prepare a profit variance analysis like the one in Exhibit 16.5. 225 16-36. Variable Cost Variances Refer to the information in Exercises 16-34 and 16-35. During the year, the company purchased 176,000 pounds of material and employed 40,400 hours of direct labor. Required a. Compute the direct material price and efficiency variances. b. Compute the direct labor price and efficiency variances. C. Compute the variable overhead price and efficiency variances.