Cascade

Cascade, Inc. produces the basic fillings used in many popular frozen desserts and treatslong dash

vanilla and chocolate icecreams, puddings,meringues, and fudge. Cascade

Cascade uses standard costing and carries over no inventory from one month to the next. Theice-cream productgroup's results for June 2017

2017 were asfollows:

Cascade, Inc. produces the basic llings used in many popular frozen desserts and treatsvanilla and chocolate ice creams, puddings, meringues, and fudge. Cascade 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: a (Click the icon to view the results.) Read the uirements. 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 static-budget amount? Break down each static-budget variance into a exible-budget variance and a sales-volume 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 field. 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.XX%.) Flexible- Actual Budget Flexible Results Variances Budget Units (pounds) 460'000 I I Revenues $2,626,600 I U I Variable mfg. costs 1'651'400 U Contribution margin $ 975200 U Performance Report, June 2017 Actual Static Results Budget Units (pounds) 450,000 447,000 Revenues 2,626,600 $ 2,592,600 Variable manufacturing costs 1:651:400 1,554,500 $ 975,200 $ 1,028,100 Contribution margin Jeff Geller, 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 $52,900, which is just over 2% of the budgeted revenues of $2,592,600. Overall, Geller feels that the business is running ne