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Problem 27-3A Objective: To calculate and interpret master budget differences Miranda Company presents the following data for its master budget: Item Budgeted Amount Actual Amount Sales $1,155,200 $1, 132,300 Materials purchases $476,000 $451,300 Direct labor used in production $255,800 $251,300 Factory overhead used in production $291,600 $296,400 Cost of goods sold $765,000 $734,100 Operating expenses $225,000 $229.400 Units sold 45,000 43,100 Net income $148,738 $146,227 Directions: For each item, calculate the difference between budgeted and actual amounts and indicate whether the difference is favorable or unfavorable