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

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
(0.25 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 $2.2 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.
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