Question

Problem 16-51 Sales Activity Variance (LO 16-3)

Odessa, Inc., reports the following information concerningoperations for the most recent month:

	Actual (based on actual of 540 units)						Master Budget (based on budgeted 600 units)
Sales revenue		$	94,300					$	102,000
Less
Manufacturing costs
Direct labor			13,034						13,800
Materials			12,490						14,400
Variable overhead			7,850						9,600
Marketing			5,140						5,820
Administrative			4,200						4,200
Total variable costs		$	42,714					$	47,820
Contribution margin		$	51,586					$	54,180
Fixed costs
Manufacturing			4,665						4,800
Marketing			9,984						9,600
Administrative			9,563						9,600
Total fixed costs		$	24,212					$	24,000
Operating profits		$	27,374					$	30,180

There are no inventories.

Required:

Prepare a sales activity variance analysis for Odessa, Inc.(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.)

ODESSA, INC.
Sales Activity Variance
	Flexible Budget (based on actual of 540 units)	Sales Activity Variance		Master Budget (based on budgeted 600 units)
Sales revenue				$102,000
Variable costs:
Manufacturing costs:
Direct labor				13,800
Materials				14,400
Variable overhead				9,600
Marketing				5,820
Administrative				4,200
Total variable costs	$0			$47,820
Contribution margin	$0			$54,180
Fixed costs:
Manufacturing				4,800
Marketing				9,600
Administrative				9,600
Total fixed costs	$0			$24,000
Operating profits	$0			$30,180