Exercise 16-28 (Algo) Sales Activity Variance (LO 16-3) Osage, Inc., manufactures and sells lamps. The company produces only when it receives orders and, therefore, has no inventories. The following information is available for the current month: Actual (based on actual orders for 450,000 units) $4,973,000 Master Budget (based on budgeted orders for 480,000 units) $4,800,000 Sales revenue Loss Variable costs Materials Direct labor Variable overhead Variable marketing and administrative Total variable costs Contribution margin Loss Tixed costs Manufacturing overhead Marketing Maministrative Total fixed costs Operating profits 1,536,000 269,000 627,500 444,000 $2,876,5001 $2,096,500 21,536,000 336,000 576,000 11456,000 $2.904,000 IS1996,000 603,900 170,000 130,000 903,900 $1,192.600 575.000 170.000 105,000 S050,000 $1,046,000 Required: Prepare a sales activity variance analysis for Osage, Inc. (Do not round intermediate calculations. 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.) Marketing Administrative Total fixed costs Operating profits 170,000 130.000 903,900 $1,192,600 170,000 105,000 850,000 $1,046,000 Required: Prepare a sales activity variance analysis for Osage, Inc. (Do not round Intermediate calculations. 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.) OSAGE, INC Sales Activity Variance Flexible Budget $ 4,500,000 Sales Activity Variance Master Budget $ 4,800,000 Sales revenue Variable costs: Materials Direct labor Variable overhead Variable marketing and administrative Total variable costs Contribution margin Fixed costs: Manufacturing overhead Marketing Administrative Totalfixed costs Operating profits 1440.000 315.000 540.0001 427,5001 2,722,500 1,777,500 $ U S 4,800,000 5 575,000 170.000 105,000 850,000 927.500 675,000 170.000 105,000 350,000 3.950.000 $ $ $