# Nottingham Forest Products### Sales Activity VarianceThe table below presents a detailed analysis of sales activity variance, comparing a flexible budget based on actual sales of 4,800 units with a master budget based on a projected 4,000 units.| **Category** | **Flexible Budget** (4,800 units) | **Sales Activity Variance** | **Master Budget** (4,000 units) ||-------------------------------|-----------------------------------|-----------------------------|---------------------------------|| **Sales Revenue** | | | $188,000 || **Variable Costs:** | | | || - **Manufacturing Costs:** | | | || -- Direct Labor | | | $39,000 || -- Materials | | | $27,200 || -- Variable Overhead | | | $13,100 || **Marketing** | | | $6,200 || **Administrative** | | | $6,500 || **Total Variable Costs** | | | $92,000 || **Contribution Margin** | | | $96,000 || **Fixed Costs:** | | | || -- Manufacturing | | | $37,400 || **Marketing** | | | $12,200 || **Administrative** | | | $10,400 || **Total Fixed Costs** | | | $60,000 || **Operating Profits** | | | $36,000 |This table serves as a comparative analysis tool, offering insights into cost control and sales efficiency by exhibiting variances between actual performance and budgeted expectations. **Nottingham Forest Products: Monthly Operations Report****Overview:**Nottingham Forest Products presents operational data for the recent month, focusing on sales and cost analysis. The report provides actual figures based on the sale of 4,800 units and compares them to a master budget based on 4,000 units.**Financial Data:**- **Sales Revenue:** - Actual: $228,700 - Budgeted: $188,000- **Less: Manufacturing Costs** - Direct Labor: - Actual: $50,302 - Budgeted: $39,000 - Materials: - Actual: $31,520 - Budgeted: $27,200 - Variable Overhead: - Actual: $16,608 - Budgeted: $13,100- **Marketing Costs:** - Actual: $7,805 - Budgeted: $6,200- **Administrative Costs:** - Actual: $7,215 - Budgeted: $6,500- **Total Variable Costs:** - Actual: $113,450 - Budgeted: $92,000- **Contribution Margin:** - Actual: $115,250 - Budgeted: $96,000**Fixed Costs:**- Manufacturing: - Actual: $38,930 - Budgeted: $37,400- Marketing: - Actual: $14,860 - Budgeted: $12,200- Administrative: - Actual: $9,510 - Budgeted: $10,400- **Total Fixed Costs:** - Actual: $63,300 - Budgeted: $60,000**Operating Profits:**- Actual: $51,950- Budgeted: $36,000**Inventory Status:**- There are no inventories.**Analysis Requirement:**Prepare a sales activity variance analysis for Nottingham Forest Products to understand the discrepancies between actual and budgeted figures.

The variance is the difference between the standard and actual cost production data. The sales activity variance is the difference between the flexible budget data and the planning budget data.Flexible budgetUnits4,800Sales revenue ($188,000*4,800/4,000)$225,600Less: Variable costs Manufacturing costs: Direct labor ($39,000*4800/4000)46,800Materials ($27,200*4800/4000)32,640Variable overhead ($13,100*4800/4000)15,720Marketing (6,200*4800/4000)7,440Administrative (6,500*4800/4000)7,800Total variable costs (92,000*4800/4000)110,400Contribution margin (96,000*4800/4000)115,200Fixed costs: Manufacturing37,400Marketing 12,200Administrative 10,400Total fixed costs60,000Operating profit$55,200 Sales activity variance Flexible budget (based on actual of 4,800 units)Sales activity varianceMaster budget (based on actual of 4,000 units)Sales revenue$225,60037,600 F$188,000Less: Variable costs Manufacturing costs: Direct labor46,8007,800 U39,000Materials 32,6405,440 U27,200Variable overhead15,7202,620 U13,100Marketing 7,4401,240 U6,200Administrative 7,8001,300 U6,500Total variable costs 110,40018,400 U92,000Contribution margin 115,20019,200 F96,000Fixed costs: Manufacturing37,4000 None37,400Marketing 12,2000 None12,200Administrative 10,4000 None10,400Total fixed costs60,0000 None60,000Operating profit$55,200$19,200 F$36,000