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Osage, Inc., manufactures and sells lamps. The company produces only when it receives orders and, therefore, has no inventories The following information is available for the current month Actual (based on actual orders for 450,000 units) $4,489,000 Master Budget (based on budgeted orders for 480,000 units) $4,320,000 Sales revenue Less Variable costs Materials Direct labor Variable overhead Variable marketing and administrative 1,680,000 274,000 626,000 442,500 1,680,000 336,000 576,000 456,000 Total variable costs Contribution margin Less Fixed costs Manufacturing overhead Marketing Administrative 578,200 175,000 139,500 $ 892,700 $ 573,800 550,000 175,000 117,500 $ 842,500 $ 429,500 Total fixed costs Operating profits Required Prepare a sales activity variance analysis for Osage, Inc., (Do not round intermediate calculations. 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.) OSAGE, INC. Sales Activity Variance Flexible Budget Sales Activity Variance Master Budget Sales revenue $4,500,000180,000 $ 4,320,000 Variable costs Materials Direct labor Variable overhead Variable marketing and administrative Total variable costs Contribution margin Fixed costs $ 4,500,000 $ 4,320,000 Manufacturing overhead Marketing Administrative Total fixed costs Operating profits $ 4,500,000 $ 4,320,000

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