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$\backslash$table$[[$Fournier Fixtures$],[$Sales Activity Variance$],[,$Flexible Budget,$\backslash$table$[[$Sales Activity$],[$Variance$]],$Master Budget$],[$Sales revenue$],[$Variable costs:$],[$Materials$],[$Direct labor$],[$Variable overhead$],[$Variable marketing and administrative$],[$Total variable costs,$$,0,,$$$,0],[$Contribution margin,$$,0,,$$$,0],[$Fixed costs:$],[$Manufacturing overhead$],[$Marketing$],[$Administrative$],[$Total fixed costs,$$,0,7,$$$,0],[$Operating profits,$$,0,,$$$,0]]$ Fournier Fixtures produces a variety of manufactured items for the home and building industry. The company produces only when it receives orders and, therefore, has no inventories. The following information is available for the current month:

Actual $($based on actual orders for $434,000$ units$)$ Master Budget $($based on budgeted orders for $387,500$ units$)$

Sales revenue $ $8,246,000$ $ $7,750,000$

Less

Variable costs

Materials $2,687,0002,385,000$

Direct labor $245,000225,000$

Variable overhead $1,252,0001,110,000$

Variable marketing and administrative $890,000800,000$

Total variable costs $ $5,074,000$ $ $4,520,000$

Contribution margin $ $3,172,000$ $ $3,230,000$

Less

Fixed costs

Manufacturing overhead $1,695,0001,730,000$

Marketing $628,000610,000$

Administrative $435,000475,000$

Total fixed costs $ $2,758,000$ $ $2,815,000$

Operating profits $ $414,000$ $ $415,000$

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