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The results for July for Brahms & Sons follow:   Actual (based on actual sales of 64,000...

The results for July for Brahms & Sons follow:  

Actual (based on actual sales of 64,000 units) Master Budget (based on budgeted sales 62,000 units)
Sales revenue $ 500,000 $ 527,000
Less
Variable costs
Direct material 64,000 52,700
Direct labor 81,000 93,000
Variable overhead 88,000 93,000
Marketing 15,400 15,500
Administrative 14,100 15,500
Total variable costs $ 262,500 $ 269,700
Contribution margin $ 237,500 $ 257,300
Less
Fixed costs
Manufacturing 110,000 104,000
Marketing 23,500 15,500
Administrative 83,400 82,000
Total fixed costs $ 216,900 $ 201,500
Operating profits $ 20,600 $ 55,800

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 (64,000 units) Manufacturing Variance Marketing & Administration Variance Sales Price Variance Flexible Budget (units) Sales Activity Variance Master Budget (62,000 units)
Sales revenue $500,000 $527,000
Variable costs:
Manufacturing
Direct material 64,000 52,700
Direct labor 81,000 93,000
Overhead 88,000 93,000
Marketing 15,400 15,500
Administration 14,100 15,500
Contribution margin $237,500 $257,300
Fixed costs:
Manufacturing 110,000 104,000
Marketing 23,500 15,500
Administration 83,400 82,000
Operating profit $20,600 $55,800

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