The master budget at Western Company last period called for sales of 226,500 units at $10.5 each. The costs were estimated to be $3.90 variable per unit and $226,500 fixed. During the period, actual production and actual sales were 231,500 units. The selling price was $10.60 per unit. Variable costs were $6.00 per unit. Actual fixed costs were $226,500.

Required:

Prepare a profit variance analysis. (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.)

Western Company

Profit Variance Analysis

Actual Budget Manugacturing Variance Sales Price Variance Flexible Budget Sales Activity Variance Master Budget

Sales Rev

Less:

Variable Costs

Contribution Margin

Less:

Fixed Costs

Operating Profits