The master budget at Western Company last period called for sales of 226,000 units at $10.00 each. The costs were estimated to be $3.85 variable per unit and $226,000 fixed. During the period, actual production and actual sales were 231,000 units. The selling price was $10.10 per unit. Variable costs were $5.50 per unit. Actual fixed costs were $226,000.

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	Manufacturing Variances		Sales Price Variance		Flexible Budget	Sales Activity Variance		Master Budget
Sales Revenue
Less:
Variable costs
Contribution margin
Less:
Fixed Costs
Operating profits