Case $11-55$ Comprehensive Variance Analysis Used to Explain Operational Results; Review of Chapters $10$ and $11$; Activity$-$Based Costing; Sales Variances $($Appendix B$)($LO $11-4,11-5,11-7,11-9)$

Case $11-55$ Part $1$

Required:

$1.$ Prepare a new contribution report for April, in which:

The static budget column in the contribution report is replaced with a flexible budget column.

The variances in the contribution report are recomputed as the difference between the flexible budget and actual columns.

$($Do not round your intermediate calculations. Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter $"0"$ for no effect $($i$.$e$.,$ zero variance$).$

Flexible Budget Actual Variance

Units $($in pounds$)$

Revenue

Direct material

Direct labor

Variable overhead

Total variable costs

Contribution margin

Case $11-55$ Part $2$

$2.$ What is the total contribution margin in the flexible budget column of the new report prepared for part $(1)?($Do not round your intermediate calculations. Round your final answer to the nearest whole dollar amount.$)$

Total contribution margin

Case $11-55$ Part $4$

$4.$ What is the total variance between the flexible budget contribution margin and the actual contribution margin in the new report prepared for part $(1)?$ Calculate the total contribution margin variance by computing the following variances. $($Assume that all materials are used in the month of purchase.$).($Do not round your intermediate calculations. Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter $"0"$ for no effect $($i$.$e$.,$ zero variance$).)$

a$.$ Direct$-$material price variance.

b$.$ Direct$-$material quantity variance.

c$.$ Direct$-$labor rate variance.

d$.$ Direct$-$labor efficiency variance.

e$.$ Variable$-$overhead spending variance.

f$.$ Variable$-$overhead efficiency variance.

g$.$ Sales$-$price variance.

Total