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		$	4,968,000					$	4,800,000
Less
Variable costs
Materials			1,440,000						1,440,000
Direct labor			276,000						336,000
Variable overhead			674,400						624,000
Variable marketing and administrative			468,000						480,000
Total variable costs		$	2,858,400					$	2,880,000
Contribution margin		$	2,109,600					$	1,920,000
Less
Fixed costs
Manufacturing overhead			988,800						960,000
Marketing			288,000						288,000
Administrative			204,000						180,000
Total fixed costs		$	1,480,800					$	1,428,000
Operating profits		$	628,800					$	492,000

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	$4,968,000							$4,500,000	$300,000	U	$4,800,000
Variable costs:
Materials	1,440,000							1,350,000	90,000	F	1,440,000
Direct labor	276,000							315,000	21,000	F	336,000
Variable overhead	674,400							585,000	39,000	F	624,000
Variable marketing and administrative	468,000							450,000	30,000		480,000
Total variable costs	$2,858,400							$2,700,000	$180,000	F	$2,880,000
Contribution margin	$2,109,600							$1,800,000	$120,000		$1,920,000
Fixed costs:
Manufacturing overhead	988,800							960,000			960,000
Marketing	288,000							288,000			288,000
Administrative	204,000							180,000			180,000
Total fixed costs	$1,480,800							$1,428,000			$1,428,000
Operating profits	$628,800							$372,000	$120,000	U	$492,000