The following data are available for the most recent year of operations for Slacker & Sons. The revenue portion of the sales activity variance is $203,000 F.

Master budget based on actual sales of 154,000 units:
Revenue	$	2,900,000
Materials		854,000
Labor		629,000
Variable manufacturing overhead and administrative costs		129,000
Fixed manufacturing overhead and administrative costs		340,000

Required:

a. How many units were actually sold in the most recent period? (Do not round intermediate calculations.)

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			F
Variable costs:
Materials			U
Direct labor			U
Variable manufacturing and administrative			U
Total variable costs	$0		U	$0
Contribution margin	$0		F	$0
Fixed costs:
Manufacturing overhead and administrative
Total fixed costs
Operating profits	$0		F	$0