The master budget at Cherrylawn Corporation at the beginning of the year was based on sales of 281,500 units with revenues of $3,378,000. Total variable costs were budgeted at $1,970,500 and fixed costs at $976,000. During the period, actual production and actual sales were 256,300 units. The actual revenues were $3,449,000. Actual variable costs were $5.85 per unit. Actual fixed costs were $1,006,000. Required: Prepare a profit variance analysis. Note: 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. Cherrylawn Corporation Profit Variance Analysis Sales Activity Actual Manufacturing Sales Price Variance Flexible Budget Variance Master Budget Variances Sales revenue U $ 3,378,000 Less: Variable costs 1,970,500 Contribution margin $ F $ $ 1,407,500 Less: Fixed costs U 976,000 976,000 Operating profits $ 0 F $ (976,000) $ 431,500