Alat Drect-matertal pitce varance, totat 5153,0000 4(0. Vutabic oretead spencing Varranos 58,000U 40i) Salespnce vartance Aunt Molly's management accountant, Karen Blair, prepares monthly budget reports based on these standard costs. April's contribution report, which compares budgeted and actual performance, is shown in the following schedule. Aunt Mollys mantigement accountant. Karen Blair, prepares monthly budget reports bused on these standard costs. April's contribution report, which compares budgeted and actual performance, is shown in the following schicdulc. Justine Madison, president of the company, is disappointed with the results. Despite a sizable increase in the number of cookies sold, the product's expected contribution to the overall profitability of the firm decreased. Madison has asked Blair to identify the reason why the contribetion margin docreased. Blair has gathered the following information to help in her analysis of the decrease. 3. Explain (ie, interpret) the meaning of the total contribution margin in the lexible budget column of the new report prepared for requirement (1). 4. What is the tolal variance between the flexible badget contribution margin and the actual contribu. tion matgin in the new repott prepared for requirement (1)? Explain this total contribution margin variance toy convputing the following variances. (Assume that all materiats ure used in the month of purchase.) a Duect-material price variance. b. Direct-muterial quantity variance. c. Direct-lahor rate variance. at Direct-labor efficiency variance. e Variable-ovethead spending variance. f. Variable-overticad efiliciency variance. E. Sales price variance. 5. A Explain the problems that might aribe is wing direct-labor hours as the tasis for applying vvertiend. b. How might activity hosed couint (ABC) wotve the problems described in requirement (Sa)t Alat Drect-matertal pitce varance, totat 5153,0000 4(0. Vutabic oretead spencing Varranos 58,000U 40i) Salespnce vartance Aunt Molly's management accountant, Karen Blair, prepares monthly budget reports based on these standard costs. April's contribution report, which compares budgeted and actual performance, is shown in the following schedule. Aunt Mollys mantigement accountant. Karen Blair, prepares monthly budget reports bused on these standard costs. April's contribution report, which compares budgeted and actual performance, is shown in the following schicdulc. Justine Madison, president of the company, is disappointed with the results. Despite a sizable increase in the number of cookies sold, the product's expected contribution to the overall profitability of the firm decreased. Madison has asked Blair to identify the reason why the contribetion margin docreased. Blair has gathered the following information to help in her analysis of the decrease. 3. Explain (ie, interpret) the meaning of the total contribution margin in the lexible budget column of the new report prepared for requirement (1). 4. What is the tolal variance between the flexible badget contribution margin and the actual contribu. tion matgin in the new repott prepared for requirement (1)? Explain this total contribution margin variance toy convputing the following variances. (Assume that all materiats ure used in the month of purchase.) a Duect-material price variance. b. Direct-muterial quantity variance. c. Direct-lahor rate variance. at Direct-labor efficiency variance. e Variable-ovethead spending variance. f. Variable-overticad efiliciency variance. E. Sales price variance. 5. A Explain the problems that might aribe is wing direct-labor hours as the tasis for applying vvertiend. b. How might activity hosed couint (ABC) wotve the problems described in requirement (Sa)t