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 457,000 units)						Master Budget (based on budgeted orders for 494,000 units)
Sales revenue		$	4,975,000					$	4,940,000
Less
Variable costs
Materials			1,475,000						1,482,000
Direct labor			283,000						345,800
Variable overhead			675,100						642,200
Variable marketing and administrative			482,000						494,000
Total variable costs		$	2,915,100					$	2,964,000
Contribution margin		$	2,059,900					$	1,976,000
Less
Fixed costs
Manufacturing overhead			990,200						960,700
Marketing			295,000						288,700
Administrative			211,000						180,700
Total fixed costs		$	1,496,200					$	1,430,100
Operating profits		$	563,700					$	545,900

Required:

Prepare a profit variance analysis for Osage, 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.)

OSAGE, INC.
Profit Variance Analysis
	Actual	Manufacturing Variances		Marketing and Administrative Variances		Sales Price Variance		Flexible Budget	Sales Activity Variance		Master Budget
Sales revenue	$4,975,000										$4,940,000
Variable costs:
Materials	1,475,000										1,482,000
Direct labor	283,000										345,800
Variable overhead	675,100										642,200
Variable marketing and administrative	482,000										494,000
Total variable costs	$2,915,100										$2,964,000
Contribution margin	$2,059,900										$1,976,000
Fixed costs:
Manufacturing overhead	990,200										960,700
Marketing	295,000										288,700
Administrative	211,000										180,700
Total fixed costs	$1,496,200										$1,430,100
Operating profits	$563,700										$545,900