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Golden Food Products produces special-formula pet food. The company carries no inventories. The master budget calls for the company to manufacture and sell 120,000 cases at a budgeted price of $60 per case this year. The standard direct cost sheet for one case of pet food follows:

Direct materials	(3 pounds @ $2)	$ 6
Direct labor	(0.25 hours @ $32)	8

Variable overhead is applied based on direct labor-hours. The variable overhead rate is $16 per direct labor-hour. The fixed overhead rate (at the master budget level of activity) is $12 per unit. All nonmanufacturing costs are fixed and are budgeted at $2.2 million for the coming year.

At the end of the year, the costs analyst reported that the sales activity variance for the year was $336,000 favorable.

The following is the actual income statement (in thousands of dollars) for the year for Golden Food Products:

Sales revenue	$ 7,800
Less variable costs
Direct materials	800
Direct labor	992
Variable overhead	515
Total variable costs	$ 2,307
Contribution margin	$ 5,493
Less fixed costs
Fixed manufacturing overhead	1,480
Nonmanufacturing costs	2,125
Total fixed costs	$ 3,605
Operating profit	$ 1,888

Required:

Prepare a profit variance analysis.

Note: Enter your answers in thousands of dollars. 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.

GOLDEN FOOD PRODUCTS Profit Variance Analysis Actual Manufacturing Variances Non-Manufacturing Variances Sales Price Variance Flexible Budget Sales Activity Variance Master Budget Sales revenue $7,800 Direct materials 800 Direct labor 992 Variable overhead 515 Total variable costs $2,307 Contribution margin $5,493 Fixed costs: Manufacturing 1,480 Non-manufacturing 2,125 Total fixed costs $3,605 Operating profits $1,888

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