The master budget at Monroe Manufacturing last period called for sales of 42,700 units at $49 each. The costs were estimated to be $33 variable per unit and $531,000 fixed. During the period, actual production and actual sales were 45,700 units. The selling price was $48 per unit. Variable costs were $35 per unit. Actual fixed costs were $522,000.

Required:

Prepare a sales activity 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.

\begin{tabular}{|c|c|c|c|c|} \hline \multicolumn{2}{c|}{ Monroe Manufacturing } \\ \hline & \multicolumn{2}{c|}{ Sales Activity Variance } \\ \hline & Flexible Budget & Sales Activity Variance & Master Budget \\ \hline Sales revenue & & & F & \\ \hline Less: & & & U & \\ \hline Variable costs & & F & $ \\ \hline Contribution margin & $ & & & \\ \hline Less: & & & & \\ \hline Fixed costs & & & & \\ \hline Operating profits & $ & & & \\ \hline \hline \end{tabular}