Hello question is attached, thanks. **Sales Activity Variance Analysis for Osage, Inc.****Objective:**Prepare a sales activity variance analysis for Osage, Inc., indicating the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option.---**OSAGE, INC.****Sales Activity Variance**| Line Item | Flexible Budget | Sales Activity Variance | Master Budget ||-----------------------------------------|-----------------|-------------------------|---------------|| **Sales revenue** | | | || **Variable costs:** | | | || - Materials | | | || - Direct labor | | | || - Variable overhead | | | || - Variable marketing and administrative | | | || **Total variable costs** | | | || **Contribution margin** | | | || **Fixed costs:** | | | || - Manufacturing overhead | | | || - Marketing | | | || - Administrative | | | || **Total fixed costs** | | | || **Operating profits** | | | |---**Note:**- Complete the table by calculating each category's variance between the flexible budget and the master budget.- Evaluate whether each variance is favorable (F) or unfavorable (U). Leave the column blank if there is no variance.- This analysis helps assess performance by comparing planned versus actual sales activities. **Osage, Inc. Manufacturing and Sales Budget Analysis**Osage, Inc. manufactures and sells lamps. The company operates on a made-to-order basis and does not hold inventory. Below is the detailed financial performance for the current month, comparing actual figures against the master budget.---### Financial Overview**Actual (450,000 units) vs. Master Budget (480,000 units)**- **Sales Revenue** - Actual: $4,968,000 - Budget: $4,800,000**Expenses**- **Variable Costs** - **Materials** - Actual: $1,440,000 - Budget: $1,440,000 - **Direct Labor** - Actual: $276,000 - Budget: $336,000 - **Variable Overhead** - Actual: $674,400 - Budget: $624,000 - **Variable Marketing and Administrative** - Actual: $468,000 - Budget: $480,000 - **Total Variable Costs** - Actual: $2,858,400 - Budget: $2,880,000- **Contribution Margin** - Actual: $2,109,600 - Budget: $1,920,000- **Fixed Costs** - **Manufacturing Overhead** - Actual: $988,800 - Budget: $960,000 - **Marketing** - Actual: $288,000 - Budget: $288,000 - **Administrative** - Actual: $204,000 - Budget: $180,000 - **Total Fixed Costs** - Actual: $1,480,800 - Budget: $1,428,000- **Operating Profits** - Actual: $628,800 - Budget: $492,000**Analysis:**The actual sales revenue exceeded the budget despite fewer units being sold. While fixed costs were higher than projected, the operating profits were better than anticipated due to efficient management of variable costs and a higher contribution margin.

In the above question we have asked to prepare Sales Activity Variance of OSAGE, INC. on the basis…

Prepare a sales activity variance analysis for Osage, Inc. (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.) OSAGE, INC. Sales Activity Variance Flexible Budget Sales Activity Variance Master Budget Sales revenue Variable costs: Materials Direct labor Variable overhead Variable marketing and administrative Total variable costs Contribution margin Fixed costs: Manufacturing overhead Marketing Administrative Total fixed costs Operating profits