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 455,000 units)						Master Budget (based on budgeted orders for 490,000 units)
Sales revenue		$	4,973,000					$	4,900,000
Less
Variable costs
Materials			1,465,000						1,470,000
Direct labor			281,000						343,000
Variable overhead			674,900						637,000
Variable marketing and administrative			478,000						490,000
Total variable costs		$	2,898,900					$	2,940,000
Contribution margin		$	2,074,100					$	1,960,000
Less
Fixed costs
Manufacturing overhead			989,800						960,500
Marketing			293,000						288,500
Administrative			209,000						180,500
Total fixed costs		$	1,491,800					$	1,429,500
Operating profits		$	582,300					$	530,500

Required:

Prepare a profit variance analysis for Osage, Inc.,

OSAGE, INC.
Profit Variance Analysis
	Actual	Manufacturing Variances		Marketing and Administrative Variances		Sales Price Variance		Flexible Budget	Sales Activity Variance		Master Budget
Sales revenue	$4,973,000										$4,900,000
Variable costs:
Materials	1,465,000		U								1,470,000
Direct labor	281,000		F								343,000
Variable overhead	674,900		U								637,000
Variable marketing and administrative	478,000										490,000
Total variable costs	$2,898,900							$0			$2,940,000
Contribution margin	$2,074,100							$0			$1,960,000
Fixed costs:
Manufacturing overhead	989,800										960,500
Marketing	293,000										288,500
Administrative	209,000										180,500
Total fixed costs	$1,491,800							$0			$1,429,500
Operating profits	$582,300							$0			$530,500