(Flexible-Budget and Sales Volume Variances) Luster, Inc., produces the basic fillings used in many popular frozen desserts and treats - vanilla and chocolate ice creams, puddings, meringues, and fudge.
Luster uses standard costing and carries over no inventory from one month to the next. The ice-cream product group's results for June 2014 were as follows:
Performance Report, June 2014
			Actual	Static
Results		Budget
Units (pounds)		350 000	335 000
Revenues	$2 012 500	$1 976 500
Variable manufacturing costs			1 137 500	1 038 500
Contribution margin		$875 000	$938 000
Sam Adler, 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 $63,000, which is less than 3% of the budgeted revenues of $1,976,500. Overall, Adler feels that the business is running fine.
1.) Break down each static-budget variance into a flexible-budget variance, sales-volume variance, and then Calculate the selling-price variance. please show work.