Harer brewery produces and sells two types of beers: Alcoholic and Non-alcoholic beer. The budgeted and actual data for the month of June 2015 is summarized in the table below. Assume that fixed cost and budgeted costs for the month are the same.

Budget

Actual  

Alcoholic

Non Alcoholic

Alcoholic

Non Alcoholic

Selling price

Br. 3.50

Br.3.40

Br.3.60

Br.3.30

Variable cost

2.00

2.00

2.30

1.80

Units sold in bottles

24,000

12,000

36,000

4,000

Required:

1) Compute the budgeted and actual contribution margin for each product

2) Compute the static budget variance

3) Compute the sales volume & flexible budget variance

Answer rating: 100% (QA)

1 Budgeted contribution margin for alcoholic 15 Budgeted contribution margin for nonalcoholic 14 2 Static budget variance for alcoholic 10800 Static b... View the full answer