A new accounting intern at Gibson Corporation lost the only copy of this period's master budget. The CFO wants to evaluate performance for this period but needs the master budget to do so. Actual results for the period follow.

Sales volume		140,000	units
Sales revenue	$	784,000
Variable costs
Manufacturing		172,480
Marketing and administrative		70,560
Contribution margin	$	540,960
Fixed costs
Manufacturing		210,000
Marketing and administrative		113,000
Operating profit	$	217,960

The company planned to produce and sell 112,000 units for $5.00 each. At that volume, the contribution margin would have been $392,000. Variable marketing and administrative costs are budgeted at 10 percent of sales revenue. Manufacturing fixed costs are estimated at $2.00 per unit at the normal volume of 112,000 units. Management notes, "We budget an operating profit of $1.00 per unit at the normal volume."

Required:

a. Construct the master budget for the period. b. Prepare a profit variance analysis.