Problem 16-52 Profit Variance Analysis (LO 16-4)

Odessa, Inc., reports the following information concerning operations for the most recent month:

	Actual (based on actual of 495 units)						Master Budget (based on budgeted 550 units)
Sales revenue		$	91,400					$	99,000
Less
Manufacturing costs
Direct labor			12,426						13,200
Materials			10,140						12,100
Variable overhead			7,630						9,350
Marketing			4,539						5,225
Administrative			4,950						4,950
Total variable costs		$	39,685					$	44,825
Contribution margin		$	51,715					$	54,175
Fixed costs
Manufacturing			4,260						4,400
Marketing			9,184						8,800
Administrative			8,758						8,800
Total fixed costs		$	22,202					$	22,000
Operating profits		$	29,513					$	32,175

There are no inventories.

Required:

Prepare a profit variance analysis for Odessa, Inc. (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.)

ODESSA, INC.
Profit Variance Analysis
	Actual 495 Units)	Manufacturing Variance		Marketing and Administrative Variance		Sales Price Variance		Flexible Budget (Units)	Sales Activity Variance		Master Budget (550 Units)
Sales revenue	$91,400										$99,000
Variable costs:
Manufacturing
Direct labor	12,426										13,200
Materials	10,140										12,100
Overhead	7,630										9,350
Marketing	4,539										5,225
Administrative	4,950										4,950
Contribution margin	$51,715										$54,175
Fixed costs:
Manufacturing	4,260										$4,400
Marketing	9,184										8,800
Administrative	8,758										8,800
Operating profit	$29,513										$32,175