Nougat, Inc. produces the basic fillings used in many popular frozen desserts and treats-vanilla and chocolate ice creams, puddings, meringues, and fudge. Nougat 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: (Click the icon to view the results.) Read the requirements 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 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 "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 Flexible Budget Variances Results Budget Units (pounds) Revenues Variable mfg. costs Contribution margin Data Table Performance Report, June 2017 Actual Results 390,000 Static Budget 380,000 Units (pounds) Revenues Variable manufacturing costs 2,203,500 $ 1,423,500 780,000 $ 2,166,000 1,368,000 798,000 $ Contribution margin Ned Finn, 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 $18,000, which is less than 1% of the budgeted revenues of $2,166,000. Overall, Finn feels that the business is running fine. Print Done i Requirements 1. 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? 2. Break down each static-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 Nougat. How would you present the results to Ned Finn? Should he be more concerned? If so, why? Print Done