Doug$$s Diner is planning to expand operations and is concerned that its reporting system might need improvement. The master budget income statement for the Downtown Doug$$s$,$ which contains a delicatessen and restaurant operation, follows $($in thousands$).$

Delicatessen Restaurant Total

Sales revenue $ $600$ $ $2,000$ $ $2,600$

Costs

Purchases $3301,1001,430$

Hourly wages $30439469$

Franchise fee $183856$

Advertising $50100150$

Utilities $4263105$

Depreciation $253863$

Lease cost $152540$

Salaries $152540$

Total costs $ $525$ $ $1,828$ $ $2,353$

Operating profit $ $75$ $ $172$ $ $247$

The company uses the following performance report for management evaluation.

DOWNTOWN DOUG$$S

Net Income for the Year

$($$$000)$

Actual Results

Actual Results Delicatessen Restaurant Total Budget Over$-$ or

$($Under$-)$ Budgeta

Sales revenue $ $700$ $ $1,000$ $ $1,700$ $ $2,600$ $ $(900)$

Costs

Purchasesb $4104008101,430$ $ $(620)$

Hourly wagesb $35350385469(84)$

Franchise feeb $21305156(5)$

Advertising $50100150150$

Utilitiesb $465096105(9)$

Depreciation $25386363$

Lease cost $15254040$

Salaries $15254040$

Total costs $ $617$ $ $1,018$ $ $1,635$ $ $2,353$ $ $(718)$

Operating profit $ $83$ $ $(18)$ $ $65$ $ $247$ $ $(182)$

a There is no sales price variance.

b Variable costs; all other costs are fixed.

Required:

Prepare a profit variance analysis for the delicatessen segment. $($Hint: Use sales revenue as your measure of volume.$)$

$***$PLEASE FORMAT CELLS AND COLUMNS AS SHOWN IN IMAGE$***$