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

	Delicatessen	Restaurant	Total
Sales revenue	$700	$2,000	$2,700
Costs
Purchases	385	1,100	1,485
Hourly wages	35	440	475
Franchise fee	21	39	60
Advertising	50	100	150
Utilities	49	63	112
Depreciation	25	38	63
Lease cost	15	25	40
Salaries	15	25	40
Total costs	595	1,830	2,425
Operating profit	105	170	275

The company uses the following performance report for management evaluation:

	DOWNTOWN DOUGS
	Net Income for the Year
	($000)
	Actual Results
Actual Results	Delicatessen	Restaurant	Total	Budget	Over- or (Under-) Budgeta
Sales revenue	$800	$1,000	$1,800	$2,700	(900)
Costs
Purchasesb	465	400	865	1,485	(620)
Hourly wagesb	40	350	390	475	(85)
Franchise feeb	24	30	54	60	(6)
Advertising	50	100	150	150
Utilitiesb	52	50	102	112	(10)
Depreciation	25	38	63	63
Lease cost	15	25	40	40
Salaries	15	25	40	40
Total costs	686	1,018	1,704	2,425	(721)
Operating profit	114	(18)	96	275	(179)

^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.) (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
Sales revenue	$800					$0	$0		$700
Variable costs:
Purchases	465	$0				0	0		385
Hourly wages	40			0		0	0		35
Franchise fee	24			0		0	0		21
Utilities	52			0		0	0		49
Total variable costs	$581	$0		$0		$0	$0		$490
Contribution margin	$219	$0		$0		$0	$0		$210
Fixed costs:
Advertising	50					$0	$0		50
Depreciation	25					0	0		25
Lease	15					0	0		15
Salaries	15					0	0		15
Total fixed costs	$105					$0	$0		$105
Operating profit	$114	$0		$0		$0	$0		$105

Thank you! please use the form so I don't get confused!