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The results for July for Brahms & Sons follow:

	Actual (based on actual sales of 62,000 units)						Master Budget (based on budgeted sales of 60,000 units)
Sales revenues		$	490,000					$	510,000
Less
Variable costs
Direct material			62,000						51,000
Direct labor			80,000						90,000
Variable overhead			87,000						90,000
Marketing			15,000						15,000
Administration			14,000						15,000
Total variable costs		$	258,000					$	261,000
Contribution margin		$	232,000					$	249,000
Less
Fixed costs
Manufacturing			104,000						102,000
Marketing			23,000						15,000
Administration			82,300						81,000
Total fixed costs		$	209,300					$	198,000
Operating profits		$	22,700					$	51,000

Required:

Prepare a profit variance analysis for Brahms & Sons. ( 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.)

BRAHMS & SONS Profit Variance Analysis Actual (62,000 units) Manufacturing Variance Marketing & Administration Variance Sales Price Variance Flexible Budget (units) Sales Activity Variance Master Budget (60,000 units) Sales revenues $490,000 $510,000 Variable costs: Direct material 62,000 51,000 Direct labor 80,000 90,000 Variable overhead 87,000 90,000 Marketing 15,000 15,000 Administration 14,000 15,000 Contribution margin $232,000 $249,000 Fixed costs: Manufacturing 104,000 102,000 Marketing 23,000 15,000 Administration 82,300 81,000 Operating profits $22,700 $51,000

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