Cascade, Inc., produces the basic fillings used in many popular frozen desserts and treats-vanilla and chocolate ice creams, puddings, meringues, and fudge. Cascade uses standard costing and carries over no inventory from one month to the next. The ice- cream product group's results for June 2017 were as follows: Insert Data Home Page Layout Formulas в Performance Report, June 2017 1. Actual Static Budget 447,000 $2,592,600 Results 460,000 $2,626,600 1,651,400 $ 975,200 3 Units (pounds) 4 Revenues 5 Variable manufacturing costs 6 Contribution margin 1,564,500 $1,028,100 Jeff Geller, the business manager for ice-cream products, is pleased that more pounds of ice cream were sold than budgeted and that revenues were up. Unfortunately, variable manufacturing costs went up, too. The bottom line is that contribution margin declined by $52,900, which is just over 2% of the budgeted rev- enues of $2,592,600. Overall, Geller feels that the business is running fine.

Cascade, Inc., produces the basic fillings used in many popular frozen desserts and treats-vanilla and chocolate ice creams, puddings, meringues, and fudge. Cascade uses standard costing and carries over no inventory from one month to the next. The ice- cream product group's results for June 2017 were as follows: Insert Data Home Page Layout Formulas в Performance Report, June 2017 1. Actual Static Budget 447,000 $2,592,600 Results 460,000 $2,626,600 1,651,400 $ 975,200 3 Units (pounds) 4 Revenues 5 Variable manufacturing costs 6 Contribution margin 1,564,500 $1,028,100 Jeff Geller, the business manager for ice-cream products, is pleased that more pounds of ice cream were sold than budgeted and that revenues were up. Unfortunately, variable manufacturing costs went up, too. The bottom line is that contribution margin declined by $52,900, which is just over 2% of the budgeted rev- enues of $2,592,600. Overall, Geller feels that the business is running fine.

Name: Q.Calculate the static-budget variance in units, revenues, variable ma
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Description: Q.Calculate the static-budget variance in units, revenues, variable manufacturing costs, and contribution margin. What percentage is each static-budget variance relative to its static-budget amount? Cascade, Inc., produces the basic fillings used inm

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter9: Evaluating Variances From Standard Costs

Section: Chapter Questions

Problem 3E: Salisbury Bottle Company manufactures plastic two-liter bottles for the beverage industry. The cost...

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