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$4,488,000$4,320,000

Less

Variable costs

Materials1,440,0001,440,000

Direct labor219,000288,000

Variable overhead626,100576,000

Variable marketing and administrative419,500432,000

Total variable costs$2,704,600$2,736,000

Contribution margin$1,783,400$1,584,000

Less

Fixed costs

Manufacturing overhead653,000625,000

Marketing180,000180,000

Administrative143,500122,500

Total fixed costs$976,500$927,500

Operating profits$806,900$656,500

Required:

Prepare a sales activity variance analysis