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 $ 700 Restaurant $2,000 Total $2,700 Sales revenue Costs Purchases Hourly wages Franchise fee Advertising Utilities Depreciation Lease cost Salaries Total costs Operating profit 420 35 21 50 49 25 25 15 15 $ 630 $ 70 1,100 438 36 100 63 38 25 25 $1,825 $ 175 1,520 473 57 150 112 63 40 40 $2,455 $ 245 The company uses the following performance report for management evaluation. DOWNTOWN DOUG'S Net Income for the Year ($ 000) Actual Results Over- or (Under-) Budget a $(900) Delicatessen $800 Restaurant $1,000 Total $1,800 Budget $ 2,700 510 400 910 1,520 40 350 390 473 $(610) (83) (3) 24 57 Actual Results Sales revenue Costs Purchasesb Hourly wages Franchise feeb Advertising Utilities Depreciation Lease cost Salaries Total costs Operating profit 50 51 30 100 50 150 112 (11) 25 15 15 $ 730 38 25 25 $1,018 $ (18) 54 150 101 63 40 40 $1,748 $ 52 63 40 40 $2,455 $ 245 $ (707) $(193) $ 70 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. (HintUse 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 Purchases Variances Marketing & Administrative Variances Flexible Budget Activity Variance Master Budget $ 800 $ 700 Sales revenue Variable costs: Purchases Hourly wages Franchise fee 510 420 40 35 24 21 Utilities 51 49 $ 625 U 525 $ $ $ 175 U 175 Total variable costs Contribution margin Fixed costs: Advertising Depreciation Lease 50 50 25 25 15 15 Salaries 15 15 Tule