A Data Table Performance Report, June 2017 Actual Results 490,000 Static Budget 479,000 Units (pounds) Revenues $ 2,616,600 $ 1,646,400 2,586,600 1,580,700 Variable manufacturing costs 970,200 $ 1,005,900 Contribution margin Jorge Gosher, 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 $35,700, which is just over 1% of the budgeted revenues of $2,586,600. Overall, Gosher feels that the business is running fine. A Requirements 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? 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 Chiffon. How would you present the results to Jorge Gosher? Should he be more concerned? If so, why? Chiffon, Inc. produces the basic filings used in many popular frozen desserts and treats-vanilla and chocolate ice creams, puddings, meringues, and fudge Chiffon 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: (Click the icon to view the results) Read the requirements Requirements 1 and 2. Calculate the statio-budol variance in units, revenues, variable manufacturing costs, and contribution margin. What percentage is each static-budget variance relative to its static-budget amount? Break down each static-budget variance into a flexible-budget variance and a sales volume variance. Begin with the flexible budget columns, then enter in the sales volume variance and static budget variances. Finally, compute the static budget variance as a percentage of the static budget. Label each variance as favorable (F) or unfavorable (U) (For variances with a So balance, make sure to enter"0" in the appropriate field. If the variance is zero, do not select a labell Round dollar amounts to the nearest Whole dollar and percentages to two decimal places, XXX%) Actual Results Flexible- Budget Variances Flexible Budget Sales. Volume Variances Static Budget Static Budget Variances SB variance % of Static Budget Units (pounds) Revenues Variable mig costs Contribution margin Requirement 3. Calculate the selling price variance. The selling price variance is $ Requirement 4. Assume the role of management accountant at Chiffon. How would you present the results to Jorge Gosher? Should he be more concerned? If so, why? The flexible-budget variances show that for the actual sales volume of 400,000 pounds, soling prices were and costs per pound were the sales-volume variance in revenues the variable-cost variance Gosher should concerned because the small statio-budget variance in contribution margin is actually made up of a sales-volume variance in contribution marginan soling price variance, and any variable manufacturing costs variance, Gosher A Data Table Performance Report, June 2017 Actual Results 490,000 Static Budget 479,000 Units (pounds) Revenues $ 2,616,600 $ 1,646,400 2,586,600 1,580,700 Variable manufacturing costs 970,200 $ 1,005,900 Contribution margin Jorge Gosher, 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 $35,700, which is just over 1% of the budgeted revenues of $2,586,600. Overall, Gosher feels that the business is running fine. A Requirements 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? 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 Chiffon. How would you present the results to Jorge Gosher? Should he be more concerned? If so, why? Chiffon, Inc. produces the basic filings used in many popular frozen desserts and treats-vanilla and chocolate ice creams, puddings, meringues, and fudge Chiffon 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: (Click the icon to view the results) Read the requirements Requirements 1 and 2. Calculate the statio-budol variance in units, revenues, variable manufacturing costs, and contribution margin. What percentage is each static-budget variance relative to its static-budget amount? Break down each static-budget variance into a flexible-budget variance and a sales volume variance. Begin with the flexible budget columns, then enter in the sales volume variance and static budget variances. Finally, compute the static budget variance as a percentage of the static budget. Label each variance as favorable (F) or unfavorable (U) (For variances with a So balance, make sure to enter"0" in the appropriate field. If the variance is zero, do not select a labell Round dollar amounts to the nearest Whole dollar and percentages to two decimal places, XXX%) Actual Results Flexible- Budget Variances Flexible Budget Sales. Volume Variances Static Budget Static Budget Variances SB variance % of Static Budget Units (pounds) Revenues Variable mig costs Contribution margin Requirement 3. Calculate the selling price variance. The selling price variance is $ Requirement 4. Assume the role of management accountant at Chiffon. How would you present the results to Jorge Gosher? Should he be more concerned? If so, why? The flexible-budget variances show that for the actual sales volume of 400,000 pounds, soling prices were and costs per pound were the sales-volume variance in revenues the variable-cost variance Gosher should concerned because the small statio-budget variance in contribution margin is actually made up of a sales-volume variance in contribution marginan soling price variance, and any variable manufacturing costs variance, Gosher
