Doug€™s Diner is planning to expand operations and is concerned that its reporting system might need improvement. The master budget income statement for the Downtown Doug€™s, which contains a delicatessen and restaurant operation, follows (in thousands):

The company uses the following performance report for management evaluation:

a There is no sales price variance.
b Variable costs; all other costs are fixed.
Required
Prepare a profit variance analysis for the delicatessen segment.

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Delicatessen Restaurant Total $3,500 1,600 106 196 $2,500 Gross sales. . Costs .. _...- $1,000 Purchases . Hourly wages... Franchise fee- 600 50 30 100 70 50 1,000 876 76 Utilities Depreciation Lease cost Salaries. .-.. Total costs 126 126 30 S 960 Operating profit$ 40 - $2,454 $ 46 $3,414 $ 86 DOWNTOWN DOUG'S Net Income for the Year ($000) Actual Results Actual Results Gross sales$1,200 Costs Over- or $(300) $ (20) Delicatessen Restaurant Budget (Under-) Budget $2,000 $3,200 $3,500 1,580 1,600 926 106 300 196 126 800 Hourly wages Franchise feeb Advertising Utilitiesb. Depreciation. 760 96 300 176 126 80 80 60 (166) 60 (10) 100 76 50 (20) 100 76 50 50 Salaies Total costs $1,1 80 $2,036 $3,198 $3,414 $ (36) 2 86 $(216) $(84) Operating profit$ 38