Columbia Coffee Inc. sells two types of coffee, Regular and Decaf. The monthly budget for Canadian coffee sales is based on a combination of last year's performance, a forecast of industry sales, and the company's expected share of the Canadian market. The following information is provided for March:
Budgeted fixed costs are $58,000. Actual fixed costs are $62,000.
Required:
Calculate the static-budget, flexible-budget and sales-volume variances for contribution margin, for the company for March.

Question

Columbia Coffee Inc. sells two types of coffee, Regular and Decaf. The monthly budget for Canadian coffee sales is based on a combination of last year's performance, a forecast of industry sales, and the company's expected share of the Canadian market. The following information is provided for March:
   Budgeted fixed costs are $58,000. Actual fixed costs are $62,000.
Required:
Calculate the static-budget, flexible-budget and sales-volume variances for contribution margin, for the company for March.

Quizplus · Accepted Answer

The Answer of Columbia Coffee Inc. sells two types of coffee, Regular and Decaf. The monthly budget for Canadian coffee sales is based on a combination of last year's performance, a forecast of industry sales, and the company's expected share of the Canadian market. The following information is provided for March:
   Budgeted fixed costs are $58,000. Actual fixed costs are $62,000.
Required:
Calculate the static-budget, flexible-budget and sales-volume variances for contribution margin, for the company for March.