Nottingham Forest Products reports the following information concerning operations for the most recent month: Master Budget (based on Sales revenue Less Manufacturing costs Direct labor Materials Variable overhead Marketing Administrative Total variable costs. Contribution margin Fixed costs Manufacturing Marketing Administrative Total fixed costs Operating profits There are no inventories. Actual (based on actual sales budgeted sales. of 4,800 units) of 4,000 units) $ 228,700 $ 188,000 50,302 31,520 16,608 7,805 7,215 $113,450 $ 115,250 38,930 14,860 9,510 $63,300 $ 51,950 39,000 27,200 13,100 6,200 6,500 $92,000 $ 96,000 37,400 12, 200 10,400 $ 60,000 $ 36,000 Required: Prepare a profit variance analysis for Nottingham Forest Products. Note: Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, or "U": unfavorable. If there is no effect, do not select either option.

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Master Budget

A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making. 

Sales Budget and Selling

A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.