ACG 3341 help A Guide to career/Snaptutorial ACG 3341 help A Guide to career/Snaptutorial | Page 12

$875 000
$938 000
Sam Adler, 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 $63,000,
which is less than 3% of the budgeted revenues of $1,976,500.
Overall, Adler feels that the business is running fine.
1) Calculate the static-budget variance in units, revenues, variable
manufacturing costs, and conribution 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 Luster. How would
you present the results to Sam Adler? Should he be more concerned?
If so, why?
==================================================
ACG 3341 Week 8 Individual Work
For more classes visit
www.snaptutorial.com