Direct materials Direct labor (2 pounds @ $22) (@.5 hours @ $60) $44 30 Variable overhead is applied based on direct labor hours. The variable overhead rate is $200 per direct-labor hour. The fixed overhead rate (at the master budget level of activity) is $100 per unit. All non-manufacturing costs are fixed and are budgeted at $3 million for the coming year. At the end of the year, the costs analyst reported that the sales activity variance for the year was $1,026,000 unfavorable. The following is the actual income statement (in thousands of dollars) for the year. $45,218 Sales revenue Less variable costs Direct materials Direct labor Variable overhead Total variable costs Contribution margin Less fixed costs Fixed manufacturing overhead Non-manufacturing costs Total fixed costs Operating profit 4,718 1,199 1,11e $ 7,018 $38,200 1,238 1,410 $ 2,640 $35,560 Required: Prepare a profit variance analysis. (Enter your answers in thousands of dollars. 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.) PAYNE SVILLE CORPORATION Profit Variance Analysis Manufacturing Non-Manufacturing Variances Variances Actual Sales Price Variance Flexible Budget Sales Activity Variance Master Budget S Sales revenue Materials Direct labor Variable overhead Total variable costs Contribution margin Fixed costs: Manufacturing Non-manufacturing Total fixed costs 45.218 4,718 1.190 1.110 7,018 38,200 S S 1,230 1.410 2.640 35.500 S Operating profits S Direct materials Direct labor (2 pounds @ $22) (@.5 hours @ $60) $44 30 Variable overhead is applied based on direct labor hours. The variable overhead rate is $200 per direct-labor hour. The fixed overhead rate (at the master budget level of activity) is $100 per unit. All non-manufacturing costs are fixed and are budgeted at $3 million for the coming year. At the end of the year, the costs analyst reported that the sales activity variance for the year was $1,026,000 unfavorable. The following is the actual income statement (in thousands of dollars) for the year. $45,218 Sales revenue Less variable costs Direct materials Direct labor Variable overhead Total variable costs Contribution margin Less fixed costs Fixed manufacturing overhead Non-manufacturing costs Total fixed costs Operating profit 4,718 1,199 1,11e $ 7,018 $38,200 1,238 1,410 $ 2,640 $35,560 Required: Prepare a profit variance analysis. (Enter your answers in thousands of dollars. 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.) PAYNE SVILLE CORPORATION Profit Variance Analysis Manufacturing Non-Manufacturing Variances Variances Actual Sales Price Variance Flexible Budget Sales Activity Variance Master Budget S Sales revenue Materials Direct labor Variable overhead Total variable costs Contribution margin Fixed costs: Manufacturing Non-manufacturing Total fixed costs 45.218 4,718 1.190 1.110 7,018 38,200 S S 1,230 1.410 2.640 35.500 S Operating profits S
