Golden Food Products produces special$-$formula pet food. The company carries no inventories. The master budget calls for the company to manufacture and sell $186,000$ 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:

Sales revenue $ $13,300$

Less variable costs

Direct materials $1,262$

Direct labor $1,487$

Variable overhead $790$

Total variable costs $ $3,539$

Contribution margin $ $9,761$

Less fixed costs

Fixed manufacturing overhead $1,955$

Nonmanufacturing costs $2,136$

Total fixed costs $ $4,091$

Operating profit $ $5,670$

Required:

Prepare a profit variance analysis.

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.

$\backslash$table$[[$GOLDEN FOOD PRODUCTS$],[$Profit Variance Analysis$],[,$Actual,$\backslash$table$[[$Manufacturing$],[$Variances$]],\backslash$table$[[$Non$-$Manufacturing$],[$Variances$]],\backslash$table$[[$Sales Price$],[$Variance$]],\backslash$table$[[$Flexible$],[$Budget$]],\backslash$table$[[$Sales Activity$],[$Variance$]],\backslash$table$[[$Master$],[$Budget$]]],[$Sales revenue,$$,13,300,,,,],[$Materials$,,1,262,,,,,,],[$Direct labor,,$1,487,,,,,,],[$Variable overhead,,$790,,,,,,],[$Total variable costs,$$,3,539,,,,,,],[$Contribution margin,$$,9,761,,,,,,],[$Fixed costs:$],[$Manufacturing$,,1,955,,,,,,],[$Non$-$manufacturing,,$2,136,,,,,,],[$Total fixed costs,$$,4,091,,,,,,],[$Operating profits,$$,5,670,,,,,,]]$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.

$3$ of $5$

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