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 inmany popular frozen desserts and treats-vanilla and chocolate ice creams, puddings, meringues, andfudge. 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:InsertDataHomePage LayoutFormulasвPerformance Report, June 20171.ActualStatic Budget447,000$2,592,600Results460,000$2,626,6001,651,400$ 975,2003 Units (pounds)4 Revenues5 Variable manufacturing costs6 Contribution margin1,564,500$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.

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

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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 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.

Definition Definition Measure used to estimate the difference between the budgeted and annual proportion for a specific accounting year. A favorable budget variance refers to positive variances or gains, while unfavorable or negative variances refer to a shortfall in the budget. A budget variance is indicative of the instances where the actual costs incurred are higher or lower than the estimated costs.

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