Golden Food Products produces special-formula pet food. The company carries no inventories. The master budget calls for the company to manufacture and sell 138,000 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:

Sales revenue	$ 9,300
Less variable costs
Direct materials	926
Direct labor	1,127
Variable overhead	590
Total variable costs	$ 2,643
Contribution margin	$ 6,657
Less fixed costs
Fixed manufacturing overhead	1,435
Nonmanufacturing costs	2,128
Total fixed costs	$ 3,563
Operating profit	$ 3,094

Required:

Prepare a profit variance analysis.