Problem 16-55 Profit Variance Analysis (LO 16-4)

The results for July for Brahms & Sonsfollow:  

	Actual (based on actual sales of 98,000 units)						Master Budget (based on budgeted sales 96,000 units)
Sales revenue		$	650,000					$	816,000
Less
Variable costs
Direct material			98,000						81,600
Direct labor			98,000						144,000
Variable overhead			105,000						144,000
Marketing			20,800						24,000
Administrative			15,800						24,000
Total variable costs		$	337,600					$	417,600
Contribution margin		$	312,400					$	398,400
Less
Fixed costs
Manufacturing			138,100						138,000
Marketing			43,800						24,000
Administrative			102,100						99,000
Total fixed costs		$	284,000					$	261,000
Operating profits		$	28,400					$	137,400

Required:

Prepare a profit variance analysis for Brahms & Sons.( Do not round intermediate calculations. Indicate theeffect of each variance by selecting "F" for favorable, or "U" forunfavorable. If there is no effect, do not select eitheroption.)

BRAHMS & SONS Profit Variance Analysis Actual (98,000 units) Manufacturing Variance Marketing & Administration Variance Sales Price Variance Flexible Budget (units) Sales Activity Variance Master Budget (96,000 units) Sales revenue $650,000 $816,000 Variablecosts: Manufacturing Directmaterial 98,000 81,600 Directlabor 98,000 144,000 Overhead 105,000 144,000 Marketing 20,800 24,000 Administration 15,800 24,000 Contributionmargin $312,400 $398,400 Fixedcosts: Manufacturing 138,100 138,000 Marketing 43,800 24,000 Administration 102,100 99,000 Operatingprofit $28,400 $137,400