Problem 16-51 (Algo) 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. 150,000 units $1,008,000 Sales volume Sales revenue Variable costs Manufacturing Marketing and administrative Contribution margin Fixed costs Manufacturing Marketing and administrative Operating profit 221,760 90,720 695,520 $ 298,600 161,100 235,820 $ The company planned to produce and sell 129,000 units for $6.00 each. At that volume, the contribution margin would have been $541,800. Variable marketing and administrative costs are budgeted at 10 percent of sales revenue. Manufacturing fixed costs are estimated at $2.40 per unit at the normal volume of 129,000 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. b. Prepare a profit variance analysis. Complete this question by entering your answers in the tabs below. Required A Required B Construct the master budget for the period. (Do not round intermediate calculations.) GIBSON CORPORATION Master Budget Sales volume units Sales revenue Variable costs: :X This is a numeric cell, so please enter numbers only. Manufacturing Marketing and administrative Contribution margin $ 0 Fixed costs: Manufacturing Marketing and administrative Operating profit $ 0 Complete this question by entering your answers in the tabs below. Required A Required 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 the GIBSON CORPORATION Profit Variance Analysis Actual Manufacturing Variances Marketing and Administrative Variances Sales Price Variance Flexible Budget Sales Activity Variance Master E Sales revenue $ 1,008,000 Variable costs: Manufacturing Marketing and administrative Contribution margin 221,760 90,720 695,520 Fixed costs: Manufacturing Marketing and administrative Operating profit 298,600 161,100 235,820