*****Please explain and show steps on how exactly you got the numbers for variance and flexible budget on the chart

Ashleys Ice Creamy budgeted and actual results are summarized below for the most recent month of October.

	Actual	Variance	Flexible Budget	Variance	Master Budget
Units	18,000				15,000
Sales Revenue	$49,500				$45,000
Variable Expenses	26,300				24,000
Contribution Margin	$23,200				$21,000
Fixed Expenses	6,300				6,000
Operating Profit	$16,900				$15,000

Total Static Budget Variance =

$1,900

F

A portion of the variance in variable costs is due to the difference in actual and standard ice cream, as follows:

The direct material (ice cream) standard calls for 10 ounces of ice cream in serving at a standard price of $0.05 per ounce.

During October the company purchased and used 200,000 ounces at a total cost of $8,000.

Required:

Complete the budget table above (i.e., fill in the white cells)

Based on the completed budget table, indicate the amount of the following variances and circle whether each one is favorable or unfavorable:

Total Sales Volume Variance $ ______

Favorable or Unfavorable

Total Flexible Budget Variance $ _______

Favorable or Unfavorable

Compute the direct material price and quantity variances and circle whether each one is favorable or unfavorable:

Direct Materials Quantity Variance $ ______

Favorable or Unfavorable

Direct Materials Price Variance $ _________

Favorable or Unfavorable