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) The following information applies to the questions displayed below.) Aunt Molly's Old Fashioned Cookies bakes cookies for retail stores. The company's best-selling cookie is chocolate nut supreme, which is marketed as a gourmet cookie and regularly sells for $9.00 per pound. The standard cost per pound of chocolate nut supreme, based on Aunt Molly's normal monthly production of 210.000 pounds, is as follows: Quantity Standard Unit Cost Total Cost Cost Item Direct materials: Cookie mix Milk chocolate Almonds 10 oz. 5 oz. 1 oz. $ 0.03 per oz. 0.16 per oz. 0.51 per oz. $0.30 0.80 0.51 $1.61 Direct labor: Mixing Baking 1 min. 2 min 14.40 per hr. 18.00 per hr. Variable overheadt Total standard cost per pound $9.24 0.60 $0.84 $1.62 $4.07 3 min. 32.40 per direct-labor hr. Direct-labor rates include employee benefits. tApplied on the basis of direct-labor hours. Aunt Molly's management accountant, Karen Blair, prepares monthly budget reports based on these standard costs. April's contribution report, which compares budgeted and actual performance, is shown in the following schedule. Contribution Report for April Static Budget Actual Units (in pounds) 210, eee 235, eee Revenue $1,899, eee $2,091,5ee Direct material $ 338,100 $ 492,150 Direct labor 176,400 181,740 Variable overhead 340,209 441, 245 Total variable costs $ 854,700 $1,115,135 Contribution margin $1,035,300 $ 976,365 Variance 25, eee F $281,580 F $154,050 5,340 u 101,645 U $260,435 u $ 58,935 U Justine Madison, president of the company, is disappointed with the results. Despite a sizable increase in the number of cookies sold, the product's expected contribution to the overall profitability of the firm decreased. Madison has asked Blair to identify the reason why the contribution margin decreased. Blair has gathered the following information to help in her analysis of the decrease. Usage Report for April Cost Item Quantity Actual Cost Direct materials: Cookie mix 2,425,898 oz. $ 72,750 Milk chocolate 1,390,000 oz. 291,989 Almonds 258,880 oz. 127,500 Direct labor: Mixing 235,889 min. 56,400 Baking 417,808 min. 125, 348 Variable overhead 441, 245 Total variable costs $1,115,135 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 varlance by selecting "Favorable" or "Unfavorable". Select "None" and enter "O" for no effect (l.e., zero varlance).) 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