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		$	600					$	2,000				$	2,600
Costs
Purchases			330						1,100					1,430
Hourly wages			30						436					466
Franchise fee			18						39					57
Advertising			50						100					150
Utilities			42						63					105
Depreciation			25						38					63
Lease cost			15						25					40
Salaries			15						25					40
Total costs		$	525					$	1,826				$	2,351
Operating profit		$	75					$	174				$	249

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		$	700				$	1,000			$	1,700			$	2,600				$	(900	)
Costs
Purchasesb			415					400				815				1,430				$	(615	)
Hourly wagesb			35					350				385				466					(81	)
Franchise feeb			21					30				51				57					(6	)
Advertising			50					100				150				150
Utilitiesb			45					50				95				105					(10	)
Depreciation			25					38				63				63
Lease cost			15					25				40				40
Salaries			15					25				40				40
Total costs		$	621				$	1,018			$	1,639			$	2,351				$	(712	)
Operating profit		$	79				$	(18	)		$	61			$	249				$	(188	)

^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.)

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) Advertising ?? ??? ??? The company uses the following performance report for management evaluation: 1430 Hourly wages a There is no sales price variance. Variable costs; all other costs are fixed. 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.)