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 458,000 units)						Master Budget (based on budgeted orders for 496,000 units)
Sales revenue		$	4,976,000					$	4,960,000
Less
Variable costs
Materials			1,480,000						1,488,000
Direct labor			284,000						347,200
Variable overhead			675,200						644,800
Variable marketing and administrative			484,000						496,000
Total variable costs		$	2,923,200					$	2,976,000
Contribution margin		$	2,052,800					$	1,984,000
Less
Fixed costs
Manufacturing overhead			990,400						960,800
Marketing			296,000						288,800
Administrative			212,000						180,800
Total fixed costs		$	1,498,400					$	1,430,400
Operating profits		$	554,400

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

$4,976,000

F

U

$4,960,000

Variable costs:

Materials

1,480,000

U

F

1,488,000

Direct labor

284,000

F

F

347,200

Variable overhead

675,200

U

F

644,800

Variable marketing and administrative

484,000

U

F

496,000

Total variable costs

$2,923,200

U

U

$0

F

$2,976,000

Contribution margin

$2,052,800

U

U

F

$0

U

$1,984,000

Fixed costs:

Manufacturing overhead

990,400

U

960,800

Marketing

296,000

288,800

Administrative

212,000

U

180,800

Total fixed costs

$1,498,400

U

U

$0

$1,430,400

Operating profits

$554,400

U

U

F

$0

U

$553,600