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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.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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.
Transcribed Image Text: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.
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