Nottingham Forest Products reports the following information concerning operations for the most recent month:Master BudgetActual(based(based ononactualsales budgeted salesof 4,890 units)of 4,075 units)Sales revenue$ 233,200$ 191,525LessManufacturing costsDirect laborMaterialsVariable overheadMarketingAdministrativeTotal variable costsContribution margin50,33231,55016,6387,8357,245$ 113,600$ 119,60039,03027,23013,1306,2306,530$ 92,150$ 99,375Fixed costsManufacturingMarketingAdministrativeTotal fixed costsOperating profits38,97514,8909,555$ 63,420$ 56,18037,43012,23010,430$ 60,090$ 39,285There are no inventories.Required:Prepare a sales activity variance analysis for Nottingham Forest ProductsNote: Do not round intermediate calculations. 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. **Nottingham Forest Products Operational Report**Nottingham Forest Products reports the following information concerning operations for the most recent month:| Description | Actual (based on actual sales of 4,890 units) | Master Budget (based on budgeted sales of 4,075 units) ||------------------------------|-----------------------------------------------|--------------------------------------------------------|| **Sales Revenue** | $233,200 | $191,525 || Less: | | || - Manufacturing Costs | | || - Direct Labor | 50,332 | 39,030 || - Materials | 31,550 | 27,230 || - Variable Overhead | 16,638 | 13,130 || - Marketing | 7,835 | 6,230 || - Administrative | 7,245 | 6,530 || **Total Variable Costs** | $113,600 | $92,150 || **Contribution Margin** | $119,600 | $99,375 || - Fixed Costs | | || - Manufacturing | 38,975 | 37,430 || - Marketing | 14,890 | 12,230 || - Administrative | 9,555 | 10,430 || **Total Fixed Costs** | $63,420 | $60,090 || **Operating Profits** | $56,180 | $39,285 |**Note:** There are no inventories.**Required:**Prepare a sales activity variance analysis for Nottingham Forest Products.**Instructions:** - Do not round intermediate calculations. - 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.**Graphs/Diagrams:**There are no graphs or diagrams in this report. Each section is presented in a table format for clarity and comparison. **Sales Activity Variance Analysis for Nottingham Forest Products****Objective:**To prepare a sales activity variance analysis for Nottingham Forest Products by comparing the flexible budget with the master budget.---**Table Overview:**This table consists of several columns including:- **Flexible Budget (based on actual of 4,890 units)**- **Sales Activity Variance**- **Master Budget (based on a budgeted 4,075 units)**---**Sales Revenue:**- Master Budget: $191,525**Variable Costs:**1. **Manufacturing Costs:** - Direct Labor - Materials - Variable Overhead - Marketing - Administrative - Total variable costs: $92,150**Contribution Margin:**- $99,375**Fixed Costs:**1. **Manufacturing:** - **Manufacturing:** $37,430 - **Marketing:** $12,230 - **Administrative:** $10,430 - **Total Fixed Costs:** $60,090**Operating Profits:**- $39,285---**Instructions:**- Do not round intermediate calculations.- 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. This analysis helps identify the difference in performance due to actual sales activity deviating from planned activity levels.

Name: Nottingham Forest Products reports the following information concernin
Uploaded: 2024-03-20T06:33:06.000Z
Channel: Bartleby
Description: Nottingham Forest Products reports the following information concerning operations for the most recent month:Master BudgetActual(based(based ononactualsales budgeted salesof 4,890 units)of 4,075 units)Sales revenue$ 233,200$ 191,525LessManufacturing

Sales Activity Variance refers to the difference between budgeted or standard sales and actual sales. It measures the impact of changes in sales volume on financial performance. A favorable variance indicates better-than-expected sales, while an unfavorable variance signals a shortfall. Analyzing this variance helps assess operational efficiency and identify areas for improvement.Working Notes:-NOTTINGHAM FOREST PRODUCTSSales Activity Variance Flexible Budget(based on actual 4,890 units) Sales Activity Variance Master Budget (based on budgeted 4,075 units) Sales Revenue $ 229,830 $ 38,305F $ 191,525Variable Costs: $ - Manufacturing costs: $ - Direct labor $ 46,836 $ 7,806U $ 39,030Materials $ 32,676 $ 5,446U $ 27,230Variable overhead $ 15,756 $ 2,626U $ 13,130Marketing $ 7,476 $ 1,246U $ 6,230Administrative $ 7,836 $ 1,306U $ 6,530Total Variable costs $ 110,580 $ 18,430U $ 92,150Contribution margin $ 119,250 $ 19,875U $ 99,375Fixed Costs: $ - Manufacturing $ 37,430 $ - $ 37,430Marketing $ 12,230 $ - $ 12,230Administrative $ 10,430 $ - $ 10,430Total Fixed costs $ 60,090 $ - $ 60,090Operating Profit $ 59,160 $ 19,875F $ 39,285