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Kirsch, Inc., produces the basic fillings used in many popular frozen desserts and treats-vanilla and chocolate ice creams, puddings, meringues, and fudge. Cascade uses standard

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Kirsch, Inc., produces the basic fillings used in many popular frozen desserts and treats-vanilla 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 2020 were as follows: (Click the icon to view the results.) Read the requirements. Requirements 1 and 2. Calculate the static-budget varlance 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 flexible-budget variance and a sales-volume variance. Begin with the flexible 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 "O' 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- Budget Actual Flexible Budget - X Varlances Data Table Results 4600001 Units (pounds) Revenues Variable mfg. costs Contribution margin 2626000 2668000 F || 1651400 Performance Report, June 2020 1610000 U Actual 974600 1058000 F Requirements 975,200 $ Results Static Budget 460,000 447,000 Units (pounds) Revenues $ 2,626,800 $ 2,592,600 Variable manufacturing costs 1,651.400 1,564,500 $ Contribution margin 1,028,100 Jesse Braun, 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, Braun feals that the business is running fine. 1. Calculate the statio-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 statio-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 Kirsch. How would you present the results to Jesse Braun? Should he be more concerned? If so, why

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