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. 130,000 units $873,600 Sales volume Sales revenue Variable costs Manufacturing Marketing and administrative Contribution margin Fixed costs Manufacturing Marketing and administrative Operating profit 192,192 78,624 $602,784 260,440 148, 280 $194,064 The company planned to produce and sell 113,100 units for $6.00 each. At that volume, the contribution margin would have been $475,020. 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 113,100 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. 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: Manufacturing Marketing and administrative Contribution margin Fixed costs: Manufacturing Marketing and administrative Operating profit 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 there is no GIBSON CORPORATION Profit Variance Analysis Actual Manufacturing Variances Marketing and Administrative Variances Sales Price Variance Flexible Budget Sales Activity Variance Master Budget Sales revenue $ 873,600 Variable costs: 192,192 Manufacturing Marketing and administrative Contribution margin 78,624 $ 602,784 Fixed costs: 260,440 Manufacturing Marketing and administrative 148,280 Operating profit $ 194,064