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ACC-S1'I-H7069 Cost Accounting 22EW5 Jennylyn Armanza 05/28/22 3:14 PM C?) Homework: 4-1 MyAccountingLab ( Question 6,ET-25{similarto} ) - - 19.04 Ofdpoir - Homework: Chapters 5-8
ACC-S1'I-H7069 Cost Accounting 22EW5 Jennylyn Armanza 05/28/22 3:14 PM C?) Homework: 4-1 MyAccountingLab ( Question 6,ET-25{similarto} ) - - 19.04 Ofdpoir - Homework: Chapters 5-8 Part '1 m .3; Chiffon, Inc. produces the basic llings used in many popular frozen desserts and treatsgvanilla and chocolate ice creams, puddings, meringues, and fudge. Chiffon uses standard costing and carries over no inventory from one month to the next. The icecream product group's results for June 201? were as follows: a [Click the icon to view the results) Read the iquirements. Requirements 1 and 2. Calculate the static-budget variance in units, revenues, variable manufacturing costs, and contribution margin. What percentage is each static-budget variance relative to its staticbudget amount? Break down each static-budget variance into a exiblebudget variance and a saleswlume variance. Begin with the exible 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 $0 balance, make sure to enter "0" in the appropriate eld. If the variance is zero, do not select a label. Round dollar amounts to the nearest whole dollar and percentages to two decimal places, X.)O(%.) Flexible- Actual Budget Flexible Data table Results Variances Budget Units (pounds) Performance Report, June 2017 Revenues Actual Static Variable mfg. costs Results Budget Contribution margin Units (pounds) 550,000 545,000 Revenues 2,928,800 $ 2,893,800 Variable manufacturing costs 1331200 1'747'200 Requirements 55 1,097,600 $ 1,146,600 Contribution margin Jesse Braun, the business manager for icecream 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 WSW-9,000, which is less than 2% of the budgeted revenues of$2,893,800. Overall, Braun feels that the business is running ne. 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 exiblebudget variance and a saleswlume variance. Calculate the sellingprice variance. Assume the role of management accountant at Chiffon. How would you present the results to Jesse Braun? Should he be more concerned? lf so, why? Print Done
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