Blue Rabbit Frozen Yogurt Company manufactures and sells three flavors of Frozen Yogurt: Chocolate Truffle Chunk, Kiwi Lemonade, and Mango Delight. Actual and budgeted results for 2020 are as follows:

Required:

1. Complete the chart listing the following variances, indicate dollar amount, and if the variance is favorable or (unfavorable).

2. As the Cost Accountant for Blue Rabbit Frozen Yogurt Company, prepare your write-up (bullet format and brief) for the VP of Finance explaining any concerns, and outline your recommendations for the company.

Product Actual for 2020 Variable Gallons cost per sold gallon $1.35 630,000 Selling price per gallon $6.00 cost per Budget for 2020 Variable Gallons sold gallon $1.30 600,000 Selling price per gallon $5.75 Chocolate Truffle Chunk Kiwi Lemonade Mango Delight $5.25 $1.10 420,000 $5.40 $1.02 460,000 $5.35 $1.55 278,000 $5.50 $1.42 240,000 MARKET INFORMATION 8,500,000 Market 7,900,000 Total Chocolate Truffle Chunk Kiwi Lemonade Mango Delight Flexible Budget Variance Sales Volume Variance Static Budget Variance Sales Mix Variance Sales Quantity Variance Market Share Variance Market Size Variance Total Market Variance Product Actual for 2020 Variable Gallons cost per sold gallon $1.35 630,000 Selling price per gallon $6.00 cost per Budget for 2020 Variable Gallons sold gallon $1.30 600,000 Selling price per gallon $5.75 Chocolate Truffle Chunk Kiwi Lemonade Mango Delight $5.25 $1.10 420,000 $5.40 $1.02 460,000 $5.35 $1.55 278,000 $5.50 $1.42 240,000 MARKET INFORMATION 8,500,000 Market 7,900,000 Total Chocolate Truffle Chunk Kiwi Lemonade Mango Delight Flexible Budget Variance Sales Volume Variance Static Budget Variance Sales Mix Variance Sales Quantity Variance Market Share Variance Market Size Variance Total Market Variance