A.

Fournier Fixtures produces a variety of manufactured items for the home and building industry. 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 actual orders for 392,000 units)	Master Budget (based on budgeted orders for 350,000 units)
Sales revenue	$ 7,448,000	$ 7,000,000
Less
Variable costs
Materials	2,600,000	2,310,000
Direct labor	230,000	210,000
Variable overhead	1,180,000	1,050,000
Variable marketing and administrative	860,000	770,000
Total variable costs	$ 4,870,000	$ 4,340,000
Contribution margin	$ 2,578,000	$ 2,660,000
Less
Fixed costs
Manufacturing overhead	1,560,000	1,580,000
Marketing	475,000	460,000
Administrative	300,000	325,000
Total fixed costs	$ 2,335,000	$ 2,365,000
Operating profits	$ 243,000	$ 295,000

Required:

Prepare a sales activity variance analysis for Fournier Fixtures.

B.

Fournier Fixtures produces a variety of manufactured items for the home and building industry. 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 actual orders for 392,000 units)	Master Budget (based on budgeted orders for 350,000 units)
Sales revenue	$ 7,448,000	$ 7,000,000
Less
Variable costs
Materials	2,600,000	2,310,000
Direct labor	230,000	210,000
Variable overhead	1,180,000	1,050,000
Variable marketing and administrative	860,000	770,000
Total variable costs	$ 4,870,000	$ 4,340,000
Contribution margin	$ 2,578,000	$ 2,660,000
Less
Fixed costs
Manufacturing overhead	1,560,000	1,580,000
Marketing	475,000	460,000
Administrative	300,000	325,000
Total fixed costs	$ 2,335,000	$ 2,365,000
Operating profits	$ 243,000	$ 295,000

Required:

Prepare a profit variance analysis for Fournier Fixtures