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 450,000 units) Master Budget (based on budgeted orders for 480,000 units)

Sales revenue $ 4,490,000 $ 4,320,000

Less

Variable costs Materials 1,680,000 1,680,000

Direct labor 219,000 288,000

Variable overhead 626,900 576,000

Variable marketing and administrative 394,500 408,000

Total variable costs $ 2,920,400 $ 2,952,000

Contribution margin $ 1,569,600 $ 1,368,000

Less

Fixed costs Manufacturing overhead 653,800 625,000

Marketing 180,000 180,000

Administrative 139,000 115,000

Total fixed costs $ 972,800 $ 920,000

Operating profits $ 596,800 $ 448,000

Required: Prepare a sales activity variance analysis for Osage, Inc

OSAGE, INC. Sales Activity Variance Flexible Budget Sales Activity Variance Master Budget Sales revenue S 0 S 0 Variable costs: Materials Direct labor Variable overhead Variable marketing and administrative Total variable costs Contribution margin Fixed costs: Manufacturing overhead Marketing Administrative Total fixed costs Operating profits S 0 S 0 S 0 S 0 S 0 S 0