Osage, Inc., manufactures and sells lamps. The company produces only when it receives orders and, therefore, has no inventories. The following information is available for the current month: Actual (based on actual orders for 462,000 units) Master Budget (based on budgeted orders for 504,000 units) Sales revenue $ 4,980,000 $ 5,040,000 Less Variable costs Materials 1,500,000 1,512,000 Direct labor 288,000 352,800 Variable overhead 675,600 655,200 Variable marketing and administrative 492,000 504,000 Total variable costs $ 2,955,600 $ 3,024,000 Contribution margin $ 2,024,400 $ 2,016,000 Less Fixed costs Manufacturing overhead 991,200 961,200 Marketing 300,000 300,000 Administrative 216,000 181,200 Total fixed costs $ 1,507,200 $ 1,442,400 Operating profits $ 517,200 $ 573,600

Osage, Inc, manufactures and sells lamps. The company produces only when it receives orders and, therefore, has no inventories. The following information is available for the current month Actual (based on actual orders for 462 000 units) Master Budget (based on budgeted orders for 504 000 units) 5,040,000 Sales revenue Less $4,980,000 Variable costs 1,500,000 Materials Direct labor Varlable overhead 288,000 675,600 492,000 955,60 024,400 1,512,000 352.800 655.200 504,000 024 000 ariable marketing and administrative Total variable costs Contribution margin Less Fixed costs Marketing Administrative 991,200 300,000 216,000 961,200 300.000 181,200 Total fxed costs Operating profits S 517,200 S 573,600 Required Prepare a profit variance anahysis for Osage, Inc., (Do not round intermediate calculations. Indicate the eftect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option.) Profit Variance Analysis Marketing and Sales Price Variance Flexible Budget Sales Activily Master Budget Actual Variances $ 5,040,000 Sales revenue ariable costs Materials 5 4980,000 5 4,619,664 1.500,000 288,000 675,600 492,000 3 2 955,600 2024,400 1,385 899 323 376 600,556 461,966 5 2,771.797 5 1,847.867 1,512,000 352,800 655,200 504,000 S 3,024,000 S 2,016,000 Direct labor ariable ovarhead Variable marketing and administrative Total variable costs Contribution margin Fbed costs Manufacturing overhead Marketing Administrative 991,200 300,000 216,000 5 1507,200 517,200 961,200 300,000 181,200 5 1.442.400 5 573,600 Total fixed costs Operating profits 5 1,847 85