Question:2 Christian, Inc., produces the basic fillings used in many popular frozen desserts and treats-vanilla and chocolate ice creams, puddings, meringues, and fudge. Bale uses standard costing and carries over no inventory from one month to the next. The ice-cream product group's results for June 2012 were as follows: Performance Report, June 2012 Static Budget Units (pounds) Revenues Actual Results 355.000 1,917,000 345,000 $1,880,250 1.260.250 1.207.500 Variable manufacturing costs Contribution margin $ 656 750 $ 672,750 Chris Nolan, 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 $16,000, which is less than 1% of the budgeted revenues of $1,880,250. Overall, Nolan feels that the business is running fine. Required (10 Marks) 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