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 466,000 units) $4,984,000 Master Budget (based on budgeted orders for 512,000 units) $5,120,000 Sales revenue Less Variable costs Materials Direct labor Variable overhead Variable marketing and administrative 1,520,000 292,000 676,000 500,000 $2,988,000 $1,996,000 1,536,000 358,400 665,600 512,000 $3,072,000 $2,048,000 Total variable costs Contribution margin Less Fixed costs Manufacturing overhead Marketing Administrative 992,000 304,000 220,000 $1,516,000 $ 480,000 961,600 304,000 181,600 $1,447,200 $ 600,800 Total fixed costs Operating profits OSAGE, INC. Profit Variance Analysis Manufacturing Variances Marketing and Administrative Variances Sales Price Variance Flexible Budget Sales Activity Variance Master Budget Actual Sales revenue $ 4,984,000 $5,120,000 Variable costs Materials Direct labor Variable overhead Variable marketing and administrative 1,520,000 292,000 676,000 500,000 $ 2,988,000 $ 1,996,000 1,536,000 358,400 665,600 512,000 $ 3,072,000 $ 2,048,000 Total variable costs Contribution margin Fixed costs 0 Manufacturing overhead Marketing Administrative 992,000 304,000 220,000 $ 1,516,000 $480,000 961,600 304,000 181,600 $ 1,447,200 $ 600,800 Total fixed costs Operating profits 0