Odessa, Inc., reports the following information concerning operations for the most recent month: Actual (based on actual of 495 units) Master Budget (based on budgeted 550 units) Sales revenue $ 91,380 $ 99,000 Less Manufacturing costs Direct labor 12,448 13,200 Materials 10,120 12,100 Variable overhead 7,620 9,350 Marketing 4,537 5,225 Administrative 4,400 4,400 Total variable costs $ 39,125 $ 44,275 Contribution margin $ 52,255 $ 54,725 Fixed costs Manufacturing 4,270 4,400 Marketing 9,182 8,800 Administrative 8,758 8,800 Total fixed costs $ 22,210 $ 22,000 Operating profits $ 30,045 $ 32,725 There are no inventories.

Required: Prepare a profit variance analysis for Odessa, Inc.

ODESSA, INC.
Profit Variance Analysis
	Actual 495 Units)	Manufacturing Variance		Marketing and Administrative Variance		Sales Price Variance		Flexible Budget (Units)	Sales Activity Variance		Master Budget (550 Units)
Sales revenue	$91,380					$2,280	F	$89,100	$9,900	U	$99,000
Variable costs:
Manufacturing costs:
Direct labor	12,448	$(568)	U					11,880	1,320	F	13,200
Materials	10,120	770	F					10,890	1,210	F	12,100
Overhead	7,620	795	F					8,415	935	F	9,350
Marketing	4,537			$166	F			4,703	522	F	5,225
Administrative	4,400			(440)	U			3,960	440	F	4,400
Contribution margin	$52,255	?	?	?	U	$2,280	F	$49,252	$5,473	U	$54,725
Fixed costs:
Manufacturing	4,270	130	F					4,400	0		$4,400
Marketing	9,182			(382)	U			8,800	0		8,800
Administrative	8,758			42	F			8,800	0		8,800
Operating profits	$30,045	?	?	?	U	$2,280	F	$27,252	$5,473	U	$32,725