Osage, Inc., manufactures and sells lamps. The company produces only when it receives orders and, therefore, has no inventories. The following information is available for the current month: Actual (based on actual orders for 467,000 units) Master Budget (based on budgeted orders for 514,000 units)
Sales revenue $4,985,000 $5,140,000
Less
Variable costs
Materials 1,525,000 1,542,000
Direct labor 293,000 359,800
Variable overhead 676,100 668,200
Variable marketing and administrative 502,000 514,000
Total variable costs $2,996,100 $3,084,000
Contribution margin $1,988,900 $2,056,000
Less:
Fixed costs
Manufacturing overhead 992,200 961,700
Marketing 305,000 305,000
Administrative 221,000 181,700
Total fixed costs $1,518,200 $1,448,400
Operating profits $470,700 $607,600

Required:
Prepare a profit variance analysis for Osage, Inc.