Fournier Fixtures produces a variety of manufactured items for the home and building industry. 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 392,000 units)	Master Budget (based on budgeted orders for 350,000 units)
Sales revenue	$ 7,448,000	$ 7,000,000
Less
Variable costs
Materials	2,600,000	2,310,000
Direct labor	230,000	210,000
Variable overhead	1,180,000	1,050,000
Variable marketing and administrative	860,000	770,000
Total variable costs	$ 4,870,000	$ 4,340,000
Contribution margin	$ 2,578,000	$ 2,660,000
Less
Fixed costs
Manufacturing overhead	1,560,000	1,580,000
Marketing	475,000	460,000
Administrative	300,000	325,000
Total fixed costs	$ 2,335,000	$ 2,365,000
Operating profits	$ 243,000	$ 295,000

Required:

Prepare a profit variance analysis for Fournier Fixtures

Note: 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.

Fournier Fixtures produces a variety of manufactured items for the home and building industry. 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 392,000 units)	Master Budget (based on budgeted orders for 350,000 units)
Sales revenue	$ 7,448,000	$ 7,000,000
Less
Variable costs
Materials	2,600,000	2,310,000
Direct labor	230,000	210,000
Variable overhead	1,180,000	1,050,000
Variable marketing and administrative	860,000	770,000
Total variable costs	$ 4,870,000	$ 4,340,000
Contribution margin	$ 2,578,000	$ 2,660,000
Less
Fixed costs
Manufacturing overhead	1,560,000	1,580,000
Marketing	475,000	460,000
Administrative	300,000	325,000
Total fixed costs	$ 2,335,000	$ 2,365,000
Operating profits	$ 243,000	$ 295,000

Required:

Prepare a profit variance analysis for Fournier Fixtures

Note: 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.

\begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|} \hline \multicolumn{16}{|c|}{ Fournier Fixtures } \\ \hline \multicolumn{16}{|c|}{ Profit Variance Analysis } \\ \hline & \multicolumn{2}{|c|}{ Actual } & \multicolumn{3}{|c|}{\begin{tabular}{c} Manufacturing \\ Variances \end{tabular}} & \multicolumn{2}{|c|}{\begin{tabular}{l} Marketing and \\ Administrative \\ Variances \end{tabular}} & \multicolumn{2}{|c|}{ Sales Price Variance } & \multicolumn{2}{|c|}{\begin{tabular}{l} Flexible \\ Budget \end{tabular}} & \multicolumn{3}{|c|}{ Sales Activity Variance } & \multirow{2}{*}{\begin{tabular}{c} \begin{tabular}{c} Master \\ Budget \end{tabular} \\ $7,000,000 \end{tabular}} \\ \hline Sales revenue & $ & 7,448,000 & & & & & & $(392,000) & U & $ & 7,840,000 & $ & 840,000 & F & \\ \hline \multicolumn{16}{|l|}{ Variable costs: } \\ \hline Materials & & 2,600,000 & $ & 12,800 & U & & & & & & 2,587,200 & & 277,200 & U & 2,310,000 \\ \hline Direct labor & & 230,000 & & (5,200) & F & & & & & & 235,200 & & 25,200 & U & 210,000 \\ \hline Variable overhead & & 1,180,000 & & 4,000 & U & & & & & & 1,176,000 & & 126,000 & U & 1,050,000 \\ \hline Variable marketing and administrative & & 860,000 & & & & (2,400) & F & & & & 862,400 & & 92,400 & U & 770,000 \\ \hline Total variable costs & $ & 4,870,000 & $ & 11,600 & U & $(2,400) & F & & & $ & 4,860,800 & $ & 520,800 & U & $4,340,000 \\ \hline Contribution margin & $ & 2,578,000 & & & U & & F & & U & $ & 2,979,200 & $ & 319,200 & F & $2,660,000 \\ \hline \multicolumn{16}{|l|}{ Fixed costs: } \\ \hline Manufacturing overhead & & 1,560,000 & & (20,000) & F & & & & & & 1,580,000 & & & & 1,580,000 \\ \hline Marketing & & 475,000 & & & & 15,000 & U & & & & 460,000 & & & & 460,000 \\ \hline Administrative & & 300,000 & & & & (25,000) & F & & & & 325,000 & & & & 325,000 \\ \hline Total fixed costs & $ & 2,335,000 & $ & (20,000) & F & $(10,000) & F & & & $ & 2,365,000 & & & & $2,365,000 \\ \hline Operating profits & $ & 243,000 & & & F & & F & & U & $ & 614,200 & $ & 319,200 & F & \begin{tabular}{ll} $ & 295,000 \end{tabular} \\ \hline \end{tabular}