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: 120,000 units $ 672.000 Sales volume Sales revenue Variable costs Manufacturing Marketing and administrative Contribution margin Fixed costs Manufacturing Marketing and administrative Operating profit 147,840 60,480 S 463,680 185,800 107, 100 $ 170,780 The company planned to produce and sell 98,400 units for $5.00 each. At that volume, the contribution margin would have been $344,400. 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 98,400 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. (Do not round intermediate calculations.) units GIBSON CORPORATION Master Budget Sales volume Sales revenue Variable costs: Manufacturing Marketing and administrative Contribution margin Fixed costs: Manufacturing Marketing and administrative Operating profit b. Prepare a profit variance analysis. (Do not round intermediate calculations. 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.) GIBSON CORPORATION Profit Variance Analysis Marketing and Administrative Variances Actual (120,000 Units) Manufacturing Variances Sales Price Variance Flexible Budget Sales Activity Variance Master Budget Sales revenue $ 672,000 Variable costs: Manufacturing Marketing and administrative Contribution margin 147,840 60,480 463,680 Fixed costs: Manufacturing Marketing and administrative Operating profit 185,800 107,100 170,780 $