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 463,000 units)						Master Budget (based on budgeted orders for 506,000 units)
Sales revenue		$	4,981,000					$	5,060,000
Less
Variable costs
Materials			1,505,000						1,518,000
Direct labor			289,000						354,200
Variable overhead			675,700						657,800
Variable marketing and administrative			494,000						506,000
Total variable costs		$	2,963,700					$	3,036,000
Contribution margin		$	2,017,300					$	2,024,000
Less
Fixed costs
Manufacturing overhead			991,400						961,300
Marketing			301,000						301,000
Administrative			217,000						181,300
Total fixed costs		$	1,509,400					$	1,443,600
Operating profits		$	507,900					$	580,400

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	$4,981,000										$5,060,000
Variable costs:
Materials	1,505,000										1,518,000
Direct labor	289,000										354,200
Variable overhead	675,700										657,800
Variable marketing and administrative	494,000										506,000
Total variable costs	$2,963,700										$3,036,000
Contribution margin	$2,017,300										$2,024,000
Fixed costs:
Manufacturing overhead	991,400										961,300
Marketing	301,000										301,000
Administrative	217,000										181,300
Total fixed costs	$1,509,400										$1,443,600
Operating profits	$507,900										$580,400