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 $700 $2,000 Total $2,700 Sales revenue Costa Purchases Hourly wages Franchise fee Advertising Utilities Depreciation Lease cost Salaries Total costs Operating profit 385 35 21 50 49 25 15 15 $ $105 1,100 440 37 100 63 38 25 25 $1,828 1,485 475 58 150 112 63 40 40 $ 2,423 $ 277 $ 172 The company uses the following performance report for management evaluation. DOWNTOWN DOUG'S Net Income for the Year (5000) Actual Results Over- or (Under-) Budget S $(900) Delicatessen $800 Restaurant $1,000 Total $1,800 Budget $2,700 470 400 870 390 1,485 475 40 350 $(615) (85) (4) Actual Results Sales revenue Costa Purchases Hourly wages Franchise foeb Advertising Utilities Depreciation Lease cost Salaries Total costo Operating profit 24 50 50 30 100 50 (12) 25 15 15 $689 $111 54 150 100 63 40 40 $1,707 $ 93 58 150 112 63 40 40 $2,423 $ 277 25 25 $1,018 $ (18) $(716) $(184) a There is no sales price variance. 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.) (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. Do not round your intermediate calculations. Enter your answers in thousands of dollars.) Actual Master Purchases Variances Marketing & Administrative Variances Flexible Budget Activity Variance Budget S 800 $ 700 Sales revenue Variable costs: Purchases Hourly wages Franchise fee 470 385 35 40 24 21 Utilities 50 49 490 S 584 $ Total variable costs Contribution margin Fixed costs: $ 216 $ 210 50 50 25 25 15 Advertising Depreciation Lease Salaries Total fixed costs Operating profit 15 15 15 $ 105 S S 105 111 $ 105