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Following question. Giovanni Catering Ltd supplies ingredients to large restaurant chains. The new and growing Fina division reported the following budgeted and actual results for

Following question.

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Giovanni Catering Ltd supplies ingredients to large restaurant chains. The new and growing Fina division reported the following budgeted and actual results for one month: Sales of passata Sales of specialist pasta Ingredients {materials} Original budget 10,000 boxes for $25 per box 8,000 packets at $30 per packet 35,000 kgs at an average price of $4 per kg (of which 50% by weight is tomatoes at $5 per kg) Actual 11 ,000 boxes sold for $264,000 ?,500 sold for $235 ,250 20,000 kgs of tomatoes at $6 16,000 kgs other ingredients for packets an average cost of $1 per kg Labour 600 hours for chefs at $70 per hour 1,200 hours of support staff at $28 per hour Each spent half their time working on oassata and half their time on pasta 650 hours for chefs at a cost of $74 an hour 1,050 hours of support staff at $28 per hour Each spent hatf their time working on passata and half their time on pasta Other variable costs Budgeted at $15 per labour hour Actual cost $12 per actual labour hour Required: (3) Calculate the budgeted and actual contribution for the month. (b) Calculate the sales price and sales volume variances for each product and in total. Assume tomatoes relate solely to passata, and other ingredients relate solely to pasta. You should value sales volume variances at standard contribution per unit. ((3) Offer possible explanations for each sales price and sales volume variance. Note: Further calculations are NOT required

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