Amerfond, Inc. produced the basic fillings used in mango popular frozen desserts and treats--vanilla and chocolate ice creams, puddings, meringues, and fudge. Amerfond used standard costing and Carrie's over no inventory from one month to the next. The ice cream product groups results for June 2017 were as follows:

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? 2. Break down each static-budget cariance into flexible-budget variance and a sales-volime variance. 3. Calculate the selling-price variance. 4. Assume the role of management accountant of Amerfond. How would him present the results to Jorge Efron? Should he be more concerned? If so, why?

Performance Report, June 2017 Actual Results 360,000 Static Budget 348,000 Units (pounds) Revenues 1,839,600 $ 1,400,400 Variable manufacturing costs 1,809,600 1,322,400 487 200 439,200 $ Contribution margin Jorge Efron, 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 $48,000, which is less than 3% of the budgeted revenues of $1,809,600. Overall, Efron feels that the business is running fine. Print Done