Paynesville Corporation manufactures and sells a preservative used in food and drug manufacturing The company carries no inventories. The master budget calls for the company to manufacture and sell 100,000 liters at a budgeted price of 575 per iter this year. The standard direct cost sheet for one liter of the preservative follows Direct materials Direct labor (2 pounds 54) (0.5 hours $24) 12 Variable overhead is applied based on direct labor hours. The variable overhead rate is $20 per direct labor hour The fixed overhead rate at the master budget level of activity) is $10 per unit. All non manufacturing costs are fixed and are budgeted at $12 million for the coming year At the end of the year, the costs analyst reported that the sales activity variance for the year was $270.000 unfavorable The following is the actual income statement in thousands of dollars) for the year, The following is the actual income statement (in thousands of dollars) for the year. $7,238 Sales revenue Less variable costs Direct materials Direct labor Variable overhead Total variable costs Contribution margin Less fixed costs Fixed manufacturing overhead Non-manufacturing costs Total fixed costs Operating profit 745 1.010 93 52,688 54,550 1.ee 1. 230 $2,250 $2,270 Required: Prepare a profit variance analysis. (Enter your answers in thousands of dollars. Indicate the effect of each variance by selecting "" for favorable, or "U" for unfavorable. If there is no effect, do not select either option) Required: Prepare a profit variance analysis. (Enter your answers in thousands of dollars. Indicate the effect of each variance by selecting "P for favorable, or "U" for unfavorable. If there is no effect, do not select either option.) PAYNESVILLE CORPORATION Prolit Variance Analyse Manufacturing Non Manufacturing Variances Variance Actual Sales Price Valance Flexible Budget Sales y Var $ Sales revenue Materials Direct labor Variable overhead Total variable costs Contribution margin Fixed costs Manufacturing Non-manufacturing Total fixed costs Operating profits 7.238 748 1,010 930 2.688 4.550 $ $ $ 5 1.050 1.230 5 2.280 $ 2270 PAYNE SVILLE CORPORATION Profit Variance Analysis Manufacturing Non Manufacturing Variances Variances Actual Sales Price Variance Flixible Budget Sales Activity Variance Master Budget $ g 7.238 748 1010 930 2.688 4.550 id sts 5 $ $ $ $ $ gin turing $ 0 1.050 1230 2.280 2 270 S 5 $ $ $