Exercise 16-28 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:

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.)

Actual (based on actual orders for 450,000 units) $4,488,000 Master Budget (based on budgeted orders for 480,000 units) $4,320,000 Sales revenue Less Variable costs Materials Direct labor Variable overhead Variable marketing and administrative 1,680,000 267,000 626,200 468,000 1,680,000 336,000 576,000 480,000 Total variable costs Contribution margin Less $1,446,800 Fixed costs Manufacturing overhead Marketing Administrative 603,900 180,000 137,000 $920,900 $ 525,900 575,000 180,000 115.000 $870,000 S 378,000 Total fixed costs Operating profits