Question: Required: Prepare a profit variance analysis. Note: Indicate the effect of each variance by selecting F for favorable, or U for unfavorable. If there

Required: Prepare a profit variance analysis. Note: Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there

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. Sales revenue Less: Variable costs Contribution margin Less: Fixed costs Cherrylawn Corporation Profit Variance Analysis Actual Manufacturing Variances Sales Price Variance Flexible Budget Sales Activity Variance Master Budge $ 0 U Operating profits $ 0 F F $ 0 U $ $ 0 $ 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 284,500 units with revenues of $3,414,000. Total variable costs were budgeted at $1,991,500 and fixed costs at $988,000. During the period, actual production and actual sales were 256,900 units. The actual revenues were $3,452,000. Actual variable costs were $5.55 per unit. Actual fixed costs were $1,018,000. 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.

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