Exercise $16-28($Algo$)$ Profit Variance Analysis $($LO $16-4)$

The master budget at Cherrylawn Corporation at the beginning of the year was based on sales of $280,000$ units with revenues of

$$3,360,000.$ Total variable costs were budgeted at $$1,960,000$ and fixed costs at $$970,000.$ During the period, actual production and

actual sales were $256,000$ units. The actual revenues were $$3,447,500.$ Actual variable costs were $$6\mathrm{.}00$ per unit. Actual fixed costs

were $$1,000,000.$

Required:

Prepare a profit variance analysis.

Note: 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.