Variable overhead 648000 750000 102000 u total

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Variable Overhead 648,000 750,000 102,000 U Total variable costs $1,564,000 $1,963,000 $399,000 U Contribution margin $1,636,000 $1,592,000 $44,000 U
Justine Madison, president of the company, is disappointed with the results. Despite a sizeable increase in the number of cookies sold, the products 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 February Cost Item Quantity Actual cost Direct materials: Cookie mix 4,650,000 oz $93,000 Milk chocolate 2,660,000 oz 532,000
Almonds 480,000 oz 240,000 Direct Labor: Mixing 450,000 min 108,000 Baking 800,000 min 240,000 Variable Overhead 750,000 Total Varaible Costs $1,963,000 1. Prepare a new contribution report for April, in which:
The static budget column in the contribution report is placed with a flexible budget column. The variances in the contribution report are recomputed as the difference between the flexible budget and actual columns.

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