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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 applles 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 cookle and regularly sells for $$8\mathrm{.}00$ per pound. The standard cost per pound of chocolate nut supreme, based on Aunt Molly's normal monthly production of $240,000$ pounds, is as follows:

$\backslash$table$[[$Cost Iten,Quantity,Standard Unit Cost,Total Cost$],[$Direct materials:,,,$],[$Cookie mix,$10$ oz$.,$$ $0\mathrm{.}06$ per oz$.,$$$0\mathrm{.}60],[$Milk chocolate Almonds,$502.1007,0\mathrm{.}19$ per oz$.,0\mathrm{.}95],[,102.,0.54$ per oz$.,0\mathrm{.}54],[$Direct labori$*,,,$$$2\mathrm{.}09],[$Mixing$,1$ min.,$14\mathrm{.}40$ per hr$.,],[$Baking$,2$ min $.,18\mathrm{.}60$ per hr$.,30\mathrm{.}240\mathrm{.}60],[$Variable overhead $,,,$$$0\mathrm{.}84],[$Total standard cost per pound,$3$ min $.,32\mathrm{.}49$ per direct$-$labor hr$.,$$$1\mathrm{.}62],[$Total standard cost per pound,,,$$4\mathrm{.}55]]$

$*$Direct$-$labor rates include employee benefits.

$$ Applied 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.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.

$\backslash$table$[[-$ Cont,on Report for Static Budget,April Actual,Variance$],[$Units $($in pounds$),240,000,265,090,25,000$ F$],[$Revenue$,$$$1,920,000,$$$2,093,500,$$$173,500$ F$],[$Direct material,$ $501,609,$$ $691,506,$$$189,900$ U$],[$Direct labor,$201,600,284,960,3,360$ U$],[$Variable overhead,$388,800,441,667,52,867$ U$],[$Total variable costs,$$1,092,000,$$$1,338,127,$$$246,127$ U$],[$Contribution margin,$ $828,000,$$ $755,373,$$ $72,627$ 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.

$\backslash$table$[[$Cost Item,Usage Report for April$],[$Quantity$,]]$ Actual CostCase $11-55$ 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 $(5?$ 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$)-)$

$\backslash$table$[[$a$.,$Direct$-$material price variance.,$$,137,650$ ubrace$(2$ubrace$),$Untavorable,$-],[$b$.,$Direct$-$material quantily variance.,,$08,$None,$(3)],[$c$.,$Direct$-$labor rate variance.,,$17,640{?}^3,$Favcrable,$*],[$d$.,$Direct$-$labor efficiency variance. $*,,0,$None,$8],[$e$.,$Variable$-$overhead spending varlance.,,$12,3678,$Untavorable,$0],[$f$.,$Variable$-$overhead efficiency variance.,,$0\%,$None,$0],[9.,$Sales$-$pri vari