Question:

this is my work:

I didnt understand the last three columns

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 140,000 liters at a budgeted price of $375 per liter this year. The standard direct cost sheet for one liter of the preservative follows. Direct materials Direct labor (2 pounds & $24) $48 (0.5 hours $64) 32 Variable overhead is applied based on direct labor hours. The variable overhead rate is $220 per direct-labor hour. The fixed overhead rate (at the master budget level of activity) is $110 per unit. All non-manufacturing costs are fixed and are budgeted at $3.2 million for the coming year. At the end of the year, the costs analyst reported that the sales activity variance for the year was $1110,000 unfavorable. The following is the actual income statement (in thousands of dollars) for the year. $50,638 Sales revenue Less variable costs Direct materials Direct labor Variable overhead Total variable costs Contribution margin Loss fixed costa Pixed manufacturing overhead Non manufacturing costs Total fixed costs Operating profit 5,268 1,210 1.130 $ 7.608 $43,030 1.250 1.430 5 2,680 $40,350 Required: Prepare a profit variance analysis. (Enter your answers in thousands of dollars. Indicate the effect of each variance by selecting "F" 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) Sale Price Variance Flexible Budget Sales Activity Variance Master Budget PAYNESVILLE CORPORATION Prolit Variance Analysis Actual Manufacturing Non-Manufacturing Variances Variances $ 50.638 5.2003 104 120 3.070 1.130 313,6901 $ 7.600 $ 17852 $ 43,030 3 17.852 $ Sales revenue Material Direct labor Variable overhead Total variable costs Contribution margin Pound costs Manufacturing Non-manufacturing Total doo Operating profits 308 5 $ 0 S S O 0 S 38 1.250 $ 14.150 1.430 2080 $ 14,150 40.350 $32002 1.770 1.770 F 1.770 0 S $ 5 $ S $ 5 180 0 5 0