=+11-25 KKK Flexible-budget and sales-volume variances OBJECTIVE 4 Glenwood Pty Ltd produces the curds for the production of specialty cheeses. Glenwood uses standard costing and carries over no inventory from one month to the next. The results for June were:

Units (litres)

1 2

3 4

5 6

A B C Actual results Static budget 500 000 Revenues 1 890 000 1 750 000 Contribution margin Variable manufacturing costs

$1 500 000 Performance report, June 2015

$3 250 000 525 000

$3 360 000

$1 470 000 Jason Knox, the business manager, is pleased that more litres of curd 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 $30000, which is less than 1% of the budgeted revenues of $3250000. Overall, Jason feels that the business is running fine.

Required 1 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?