Doug's Diner is planning to expand operations and is concemed 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 Dalia Restaurant To Sales revenue $700 $ 2.000 5 2.700 5 Cost Purchases 420 1,100 1.620 Hourly wages 35 437 472 Franchise toe 21 37 58 Advertising TO 100 150 uits 49 63 112 Depreciation 38 63 LARDO DO 25 40 Salaries 25 40 Total costs SO 5220 Operating profit $ 70 $ 175 5245 The company uses the following performance report for management evaluation: DOWNTOWN DOUGS Net Income for the Year (5000) Actual Rests Delicatessen 5800 Restaurant $1,000 Total $1.800 Budget $2.700 Over of (Under-) Budget S1900) 5(610) (82) 14) Actes Sales noves Costs Purchases Hourly was Franchise Advertising ults Deprecator LARGO DOS Salaries Total costs Operating profit 510 40 24 50 51 25 15 15 ST30 $ 70 400 910 1,520 350 390 472 30 54 SB 100 150 160 50 101 112 38 63 40 40 40 S1018 $1,748 52,456 5 (18) $ 2 $ 245 = = = (11) 5707 5 (199) There is no sales price variance Variable costs; al other costs and fixed. Required: : Prepare a profit variance analysis for the delicatessen segment. Hint: Use sales revenue as your measure of volume. (Indicate the effect of each variance by calacting "F" for favorable, or "U" for unfavorable. If there ic no effect, do not coleot either option. Do not round your Intermediate calculations. Enter your answers in thousands of dollars.) Actual Purohace Variances Marketing & Administrative Variances Flexible Budget Activity Variance Master Budget 5 700 $ 800 510 40 420 35 24 51 21 49 525 Sales reven Variable costs Purchases Hourly was Franchise Ultes Total variable costs Contribution margin Fond costs: Advertising Depreciation Lease Salaries Totaltund costs Total Operating profit $ $ 625 175 5 s 175 501 50 25 151 25 15 15 105 $ $ $ 15 105 70 70 S