A new accounting intern at Gibson Corporation lost the only copyof this period's master budget. The CFO wants to evaluateperformance for this period but needs the master budget to do so.Actual results for the period follow:

  

Sales volume		240,000	units
Sales revenue	$	1,612,800
Variable costs
Manufacturing		354,816
Marketing andadministrative		145,152
Contribution margin	$	1,112,832
Fixed costs
Manufacturing		469,600
Marketing andadministrative		276,800
Operating profit	$	366,432

  

The company planned to produce and sell 204,000 units for $6.00each. At that volume, the contribution margin would have been$856,800. Variable marketing and administrative costs are budgetedat 10 percent of sales revenue. Manufacturing fixed costs areestimated at $2.40 per unit at the normal volume of 204,000 units.Management notes, "We budget an operating profit of $1.00 per unitat the normal volume."

  

Required:

(a)	Construct the master budget for the period. (Do notround your intermediate calculations.Round your answers to thenearest dollar amount.)

(b)	Prepare a profit variance analysis like the one in Exhibit16.5.(Indicate the effect of each variance by selecting "F"for favorable, "U" for unfavorable, and "None" for no effect (i.e.,zero variance).Do not round your intermediatecalculations. Round your answers to the nearestdollar amount.)