Contribution Margin Volume Variance Iliff, Inc., produces and sells two types of countertop ovens—the toaster oven and the convection oven. Budgeted and actual data for the two models are shown below. Budgeted Amounts:     Toaster Oven

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Contribution Margin Volume Variance

Iliff, Inc., produces and sells two types of countertop ovens—the toaster oven and the convection oven. Budgeted and actual data for the two models are shown below.

Budgeted Amounts:

    Toaster
Oven
  Convection
Oven
  Total
Sales:            
    ($92 × 29,500)   $2,714,000          
    ($155 × 15,500)       $2,402,500     $5,116,500  
Variable expenses   495,000     780,000     1,275,000  
    Contribution margin   $2,219,000     $1,622,500     $3,841,500  

 

Actual Amounts:

    Toaster
Oven
  Convection
Oven
  Total
Sales:            
    ($81 × 25,000)     $2,025,000          
    ($165 × 12,500)       $2,062,500     $4,087,500  
Variable expenses   539,600     712,300     1,251,900  
    Contribution margin   $1,485,400     $1,350,200     $2,835,600  

Required:

1. Calculate the budgeted average unit contribution margin. Round your answer to the nearest cent. Use rounded answer in subsequent computations.

2. Calculate the contribution margin volume variance.

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