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Odessa, Inc., reports the following information concerning operations for the most recent month: Actual (based on actual of 540 units) $94,400 Master Budget (based on
Odessa, Inc., reports the following information concerning operations for the most recent month: Actual (based on actual of 540 units) $94,400 Master Budget (based on budgeted 600 units) $102,000 Sales revenue Less Manufacturing costs Direct labor Materials Variable overhead Marketing Administrative Total variable costs Contribution margin Fixed costs Manufacturing Marketing Administrative Total fixed costs Operating profits 13,648 11,230 7,840 4.962 4.800 $42,480 $51.920 14,400 13.200 9,600 5,640 4.800 $ 47.640 $ 54.360 4,650 9,990 9.556 $24.196 $27,724 4,800 9,600 9,600 $ 24.000 $ 30,360 There are no inventories. Required: Prepare a profit variance analysis for Odessa, Inc. (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.) ODESSA, INC. Profit Variance Analysis Actual 540 Units) Manufacturing Variance Marketing and Administrative Variance Sales Price Variance Flexible Budget (Units) Sales Activity Variance Master Budget (600 Units) $ 102,000 Sales revenue $ 94,400 Variable costs Manufacturing Direct labor 13,648 14,400 11.230 13,200 Materials Overhead 7,840 9.600 Marketing 4,962 5,640 Administrative 4,800 4,800 Contribution margin $ 51.920 $ 54,360 Fixed costs: Manufacturing 4,650 $ 4.800 9.990 9,600 Marketing Administrative Operating profit 9,556 9,600 $ 27,724 $ 30,360
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