Flexible-budget and sales volume variances. Cascade, Inc., produces the basic llings used in many popular frozen desserts and treats—vanilla and chocolate ice creams, puddings, meringues, and fudge. Cascade uses standard costingand carries over no inventory from one month to the next. The icecream product group’s results for June 2017 were as follows: HomeInsertPage LayoutFormulasDataAPerformance Report, June 2017ActualStatic Budget447,0002Results3 Units (pounds)4 Revenues5 Variable manufacturing costs6 Contribution margin460,000$2,626,6001,651,400$ 975,200$2,592,6001,564,500$1,028,100Jeff Geller, the business manager for ice-cream products, is pleased that more pounds of ice cream weresold 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.1. Calculate the static-budget variance in units, revenues, variable manufacturing costs, and contribu-tion margin. What percentage is each static-budget variance relative to its static-budget amount?2. Break down each static-budget variance into a flexible-budget variance and a sales-volume variance.3. Calculate the selling-price variance.4. Assume the role of management accountant at Cascade. How would you present the results to JeffGeller? Should he be more concerned? If so, why?Required

Name: Flexible-budget and sales volume variances. Cascade, Inc., produces th
Uploaded: 2024-03-20T06:33:06.000Z
Channel: Bartleby
Description: Flexible-budget and sales volume variances. Cascade, Inc., produces the basic llings used in many popular frozen desserts and treats—vanilla and chocolate ice creams, puddings, meringues, and fudge. Cascade uses standard costingand carries over no in