Bombe, Inc. produces the basic fillings used in many popular frozen desserts and treats vanilla and chocolate ice creams, puddings, meringues, and fudge.

Bombe 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:

Performance Report, June 2017
	Actual	Static
	Results	Budget
Units (pounds)	360,000	348,000
Revenues	$1,839,600	$1,809,600
Variable manufacturing costs	1,400,400	1,322,400
Contribution margin	$439,200	$487,200

Tom Finn, 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,Finn feels that the business is running fine.

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 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 Bombe, How would you present the results to Tom Finn? Should he be more concerned? If so, why?