The following data are available for the most recent year of operations for Slacker & Sons. The revenue portion of the sales activity variance is $336,000 F.

Master budget based on actual sales of 167,000 units:
Revenue	$	4,200,000
Materials		867,000
Labor		642,000
Variable manufacturing overhead and administrative costs		142,000
Fixed manufacturing overhead and administrative costs		470,000

Required:

a. How many units were actually sold in the most recent period?

Actual Sales

units

b. Prepare a sales activity variance for the most recent year for Slacker & Sons. (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.)

SLACKER & SONS
Sales Activity Variance
	Flexible Budget	Sales Activity Variance		Master Budget
Sales revenue
Variable costs:
Materials
Direct labor
Variable manufacturing and administrative
Total variable costs
Contribution margin
Fixed costs:
Manufacturing overhead and administrative
Total fixed costs
Operating profits