• Marron, Inc. produces the basic fillings used in many popular frozen desserts and treats—vanilla and chocolate ice creams, puddings, meringues, and fudge. The ice cream product group’s results for June 2009 were: Performance report, June 2009 Actual Results Static Budget Units 525,000 500,000 Revenue $ 3,360,000 $ 3,250,000 Variable manufacturing costs $ 1,890,000 $ 1,750,000 Contribution margin $ 1,470,000 $ 1,500,000 Mr. Abera, the business manager for ice-cream products, is pleases that more units 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 $30,000, which is less than 1% of the budgeted revenues of $3,250,000. Overall, Mr. Abera feels that the business is running fine. Required: i. Calculate the static-budget variance in units, revenues, variable manufacturing costs, and contribution margin? ii. Break down each static budget variance into a flexible-budget variance and a sales-volume variance. iii. Calculate the selling price variance.