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please answer all parts of the question with detail and steps 7-20 Flexible-budget and sales volume variances. (LO 2, 5) Cascade, Inc. produces the basic
please answer all parts of the question with detail and steps
7-20 Flexible-budget and sales volume variances. (LO 2, 5) Cascade, 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 were as follows: Jeff Geller, 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, Geller feels that the business is running fine. Required 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 Cascade. How would you present the results to Jeff Geller? Should he be more concerned? If so, whyStep by Step Solution
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