OSAGE, INC. Profit Variance Analysis Marketing and Manufacturing Variances Administrative Variances Actual Sales Price Variance Flexible Budget Sales Activity Variance Master Budget $ 4,988,000 $ 5,200,000 1,560,000 Sales revenue Variable costs: Materials Direct labor Variable overhead Variable marketing and administrative Total variable costs Contribution margin Fixed costs: Manufacturing overhead Marketing Administrative Total fixed costs Operating profits 1,540,000 296,000 676,400 508,000 $ 3,020,400 $ 1,967,600 364,000 676,000 520,000 $ 3,120,000 $ 2,080,000 $ $ 0 0 992,800 308,000 224,000 $ 1,524,800 $ 442,800 962,000 308,000 182,000 $ 1,452,000 $ 628,000 $ 0