Exercise 16-28 (Static) 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) $4,968,000 Master Budget (based on budgeted orders for 480,000 units) $ 4,800,000 Sales revenue Less Variable costs Materials Direct labor Variable overhead Variable marketing and administrative Total variable costs Contribution margin Less Fixed costs Manufacturing overhead Marketing Administrative Total fixed costs Operating profits 1,440,000 276,000 674,400 468,000 $ 2,858,400 $ 2,109,600 1,440,000 336,000 624,000 480,000 $ 2,880,000 $1,920,000 988,800 288,000 204,000 $1,480, 800 $ 628,800 960,000 288,000 180,000 $1,428,000 $ 492,000 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 Sales Activity Variance Master Budget Sales revenue F Variable costs: Materials F Direct labor U Variable overhead F Variable marketing and administrative Total variable costs 0 F 0 Contribution margin 0 0 Fixed costs: Manufacturing overhead Marketing 288,000 U Administrative U Total fixed costs U 0 288,000 (288,000) Operating profits U lo 0