Golden Food Products produces special$-$formula pet food. The company carries no inventories. The master budget calls for the Required:

Prepare a profit variance analysis.

Note: Enter your answers in thousands of dollars. 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.

Answer is not complete.

company to manufacture and sell $240,000$ cases at a budgeted price of $$60$ per case this year. The standard direct cost sheet for one

case of pet food follows:

Direct materials

$(3$ pounds @ $$2)$ $ $6$

Direct labor

$(0\mathrm{.}25$ hours @ $$32)8$

Variable overhead is applied based on direct labor$-$hours. The variable overhead rate is $$16$ per direct labor$-$hour. The fixed overhead

rate $($at the master budget level of activity$)$ is $$10$ per unit. All nonmanufacturing costs are fixed and are budgeted at $$2\mathrm{.}2$ million for the

coming year.

At the end of the year, the costs analyst reported that the sales activity variance for the year was $$336,000$ favorable.

The following is the actual income statement $($in thousands of dollars$)$ for the year for Golden Food Products:

Required:

Prepare a profit variance analysis.

Note: Enter your answers in thousands of dollars. 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.