Problem 16-46 Solve for Master Budget Given Actual Results (LO 16-2, 4) A new accounting intern at Gibson Corporation lost the only copy of this period's master budget. The CFO wants to evaluate performance for this period but needs the master budget to do so. Actual results for the period follow: 140.000 units 3 784 000 Sales volume Sales revenue Variable costs Manufacturing Marketing and administrative Contribution margin Fixed costs Manufacturing Marketing and administrative Operating profit 172.480 70.560 $540.960 224,000 114.700 $198.260 The company planned to produce and sell 119,000 units for $5.00 each. At that volume, the contribution margin would have been $416,500. Variable marketing and administrative costs are budgeted at 10 percent of sales revenue. Manufacturing fixed costs are estimated at $2.00 per unit at the normal volume of 119,000 units. Management notes, "We budget an operating profit of $1.00 per unit at the normal volume." Required: a. Construct the master budget for the period. (Do not round intermediate calculations. GIBSON CORPORATION Master Budget Sales volume Sales revenue Variable costs: Manufacturing Marketing and administrative Contribution margin Fixed costs: Manufacturing Markeling and administrative Operating profit b. Prepare a profit variance analysis. (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.) GIBSON CORPORATION Profit Variance Analysis Actual (140,000 Units) Manufacturing Variances Marketing and Administrative Variances Sales Price Variance Flexible Budget Sales Activity Variance Master Budget Sales revenue $ 784,000 Variable costs: Manufacturing Marketing and administrative 172,480 70,560 540,960 Contribution margin $ Fixed costs: Manufacturing Marketing and administrative Operating profit 228,000 116,700 196,260 $