Feb 24Original BudgetBudgeted Mkt Size11440000Budgeted Mkt Share5720000Budgeted Mkt Share (%)0.5Sales9219900VC66286000.7189448909TFC1945900Profit645400123Budgeted fr Increased Demandmkt sizeexpectedActualActualActualActualActual Mkt size12180000mkt shareexpectedexpectedActualActualActualIncrease in mkt Size0.065sales mixexpectedexpectedexpectedActualActualcostsexpectedexpectedexpectedexpectedActualSales9819193.5VC7059459TFC1945900Profit813834.500000001Diff due to Increased Demand168434.500000001Mkt Size VarFBudget for Actual Mkt ShareAct Mkt Size12180000Act Mkt Share5968366Act Mtk Share (%)0.49Sales9622809.63VC6918269.82TFC1945900Profit758639.810000001Diff dut ot Mkt Share-55194.6900000004Mkt Share VarURevised Budget for Actual (Given)Sales9645300VC6936300TFC1945900Profit763100Diff due to Sales Mix4460.1899999995Sales mix VarF

BudgetedBUDGETED PLAN 1973Standard Contr. Margin/GallonForecasted gallon SalesForecasted Standard Cont. Marginvanilla0.43292,409,8541,043,2260.42Chocolate0.45352,009,061911,1090.35Walnut0.571348,88327,9270.01Buttercrunch0.4771262,185125,0880.05Cherry Swirl0.5153204,774105,5200.04Strawberry0.4683628,560294,3550.11Pecan Ship0.5359157,01284,1430.03TOTAl0.45305,720,3292,591,3681.00Budgeted Total expenses - BreakdownVariable CostFixed CostTotalManufacturing5,888,100612,8006,500,9001.03Var Manuf Cost/ gallonDelivery187,300516,300703,6000.03Var Del cost / gallonAdvertising553,200553,2000.10Var Adver Cost/ GallonSelling368,800368,800Administrative448,000448,000TOTAL6,628,6001,945,9008,574,500Sales9,219,9001.6118Standard CostVariable Cost6,628,600Contribution Margin2,591,300Fixed Cost1,945,900Income From Operations645,400

ActualREVISED BUDGETED FOR ACTUAL VOLUME 1973Standard Contr. Margin/GallonForecasted gallon SalesForecasted Standard Cont. Marginvanilla0.43292,458,2121,064,160Chocolate0.45352,018,525915,401Walnut0.571350,12428,636Buttercrunch0.4771268,839128,263Cherry Swirl0.5153261,240134,617Strawberry0.4683747,049349,843Pecan Ship0.5359164,37788,090TOTAl0.45395,968,3662,709,010Budgeted Total expenses - BreakdownVariable CostFixed CostTotalManufacturing6,113,100612,8006,725,900Delivery244,500516,300760,800Advertising578,700578,700Selling368,800368,800Administrative448,000448,000TOTAL6,936,3001,945,9008,882,200Sales9,645,3001.6161Price Charged Per Gallon is Higher than Budgeted standard costVariable Cost6,936,300Contribution Margin2,709,000Fixed Cost1,945,900Income From Operations763,100

Budget on ActualStandard Contr. Margin/GallonForecasted gallon SalesForecasted Standard Cont. Marginvanilla0.43292,458,2121,064,160Chocolate0.45352,018,525915,401Walnut0.571350,12428,636Buttercrunch0.4771268,839128,263Cherry Swirl0.5153261,240134,617Strawberry0.4683747,049349,843Pecan Ship0.5359164,37788,090TOTAl0.45395,968,3662,709,010Budgeted Total expenses - BreakdownVariable CostFixed CostTotalManufacturing6,143,412612,8006,756,2121.03Var Manuf Cost/ gallonDelivery195,421516,300711,7210.03Var Del cost / gallonAdvertising577,187577,1870.10Var Adver Cost/ GallonSelling368,800368,800Administrative448,000448,000TOTAL6,916,0201,945,9008,861,920Sales9,619,6811.6118Standard cost from Budgeted Volume and salesVariable Cost6,916,020Contribution Margin2,703,660Fixed Cost1,945,900Income From Operations757,760Here the standard Costs derived from the budgeted sales and budgeted volume are used on the Actual volume to arrive at the variable cost and the sales amount.

Earniing StatementActualBudgeted for ActualVarianceSales Net9,657,3009,645,30012,000Manufacturing Cost6,824,9006,725,90099,000Delivery706,800760,800-54,000Advertising607,700578,70029,000Selling362,800368,800-6,000Administrative438,000448,000-10,000Total Expenses8,940,2008,882,20058,000Income from Operations717,100763,100-46,000EARNING STATEMENT REVISITED.ActualBudgeted for ActualVarianceSales Net9,619,6819,645,300-25,619Actual Volume at the standard price considered for the actual sales.Manufacturing Cost6,824,9006,725,900-99,000Delivery706,800760,80054,000Advertising607,700578,700-29,000Selling362,800368,8006,000Administrative438,000448,00010,000Total Expenses8,940,2008,882,200-58,000Income from Operations679,481763,100-83,619

Variance CalculationsSales Mix and Volume varianceProductBudgeted VolumeActual VolumeDifferenceUnit ContributionSales Volume variance123 = 2-1vanilla2,409,8542,458,21248,3580.432920,934Chocolate2,009,0612,018,5259,4640.45354,292Walnut48,88350,1241,2410.5713709Buttercrunch262,185268,8396,6540.47713,175Cherry Swirl204,774261,24056,4660.515329,097Strawberry628,560747,049118,4890.468355,488Pecan Ship157,012164,3777,3650.53593,947TOTAL5,720,3295,968,366248,037117,642Mix VarianceProductBudgeted ProportionBudgeted Mix at actual VolumeActual SalesDifferenceUnit ContributionSales Volume variance123 = 2-145 = 4 x 3vanilla0.422,514,3472,458,212-56,134.760.4329-24,301Chocolate0.352,096,1752,018,525-77,650.130.4535-35,214Walnut0.0151,00350,124-878.600.5713-502Buttercrunch0.05273,554268,839-4,714.500.4771-2,249Cherry Swirl0.04213,653261,24047,586.870.515324,522Strawberry0.11655,815747,04991,234.250.468342,725Pecan Ship0.03163,820164,377556.860.5359298TOTAL1.005,968,3665,968,3665,279Sales Volume VarianceProductBudgeted ProportionBudgeted Mix at actual VolumeBudgeted VolumeDifferenceUnit ContributionSales Volume variance123 = 1-245 = 4 x 3vanilla0.422,514,3472,409,854104,492.760.432945,235Chocolate0.352,096,1752,009,06187,114.130.453539,506Walnut0.0151,00348,8832,119.600.57131,211Buttercrunch0.05273,554262,18511,368.500.47715,424Cherry Swirl0.04213,653204,7748,879.130.51534,575Strawberry0.11655,815628,56027,254.750.468312,763Pecan Ship0.03163,820157,0126,808.140.53593,648TOTAL1.005,968,3665,720,329112,363VARIANCE FROM OPERATIONSBudgeted Expense at Actual VolumeActualManufacturing6,756,2126,824,900-68,688Delivery711,721706,8004,921Advertising577,187607,700-30,513Selling368,800362,8006,000Administrative448,000438,00010,000TOTAL8,861,9208,940,200-78,280More expenses are incurred than standard budgeted expenseTotal VarianceVariance Due to SalesVolume112,363Mix5,279Prices12,000129,642Variance Due to OperationsManufacturing-68,688Delivery4,921Advertising-30,513Selling6,000Administration10,000-78,280Net variance51,362So here we see that though the total variance is positive it is just because of the increased sales volume and the increased prices per gallon than the budgeted prices.Second case is that if there was only the volume increase and no increase in the price then the variance statement could have been less favourable.TOTAL VARIANCEVariance Due to SalesVolume112,363Mix5,279Prices-25,61992,023Price variance considering Actual Volume at the standard price taken for the actual sales amount.Variance Due to OperationsManufacturing-68,688Delivery4,921Advertising-30,513Selling6,000Administration10,000-78,280Net variance13,743Budgeted Sales Volume and Market ShareEstimated Industry volume11,440,000Budgeted Volume (Units)5,720,329Budgeted Volume (%)50.00%Actual Sales Volume and Market ShareActual Industry Volume12,180,000Actual Sales Volume (unit)5,968,366Actual Share in (%)49.00%Variance Due to Market ShareProductBudgeted ProportionActual SalesBudgeted Share of sales at actual industry VolumeDifferenceUnit ContributionSales Volume variance123 = 1-245 = 4 x 3vanilla0.422,514,3472,565,736-51,389.410.4329-22,246Chocolate0.352,096,1752,139,018-42,842.620.4535-19,429Walnut0.0151,00352,045-1,042.420.5713-596Buttercrunch0.05273,554279,145-5,591.020.4771-2,667Cherry Swirl0.04213,653218,020-4,366.740.5153-2,250Strawberry0.11655,815669,219-13,403.850.4683-6,277Pecan Ship0.03163,820167,168-3,348.230.5359-1,794TOTAL1.005,968,3666,090,350-55,260Actual Sales (Unit)5,968,366aBudget share at Actual industry Volume6,090,350bDifference-121,984c=a-bBudgeted Unit Contribution0.4530dVariance due to market share-55,260e = c x dVariance due to Industry VolumeActual Industry Volume12,180,000aBudgeted Industry Volume11,440,000bDifference740,000c=a-bBudgeted Market Share50.00%dMarket share (gain/Loss)370,021e = c x dBudgeted unit contribution0.4530fVariance Due to industry Volume167,623g = e x fTotal of Market and Industry Volume Variance112,363

Performance ComparisionPerformance for Frank RobertsRevised Budgeted ValueActual ValueDifference (A)Actual Value at Budgeted Standard CostDifference (B)abc = a-bde = d-bSales9,645,3009,657,30012,0009,619,68137,619Advertising578,700607,700-29,000577,187-30,513Selling368,800362,8006,000368,800-6,000TOTAL10,592,80010,627,800-11,00010,565,6681,107Performance for John ParkerRevised Budgeted ValueActual ValueDifference (C)Actual Value at Budgeted Standard CostDifference (D)abc = a-bde = d-bManufacturing6,725,9006,824,900-99,0006,756,212-68,688Delivery760,800706,80054,000711,7214,921Administrative448,000438,00010,000448,00010,000TOTAL7,934,7007,969,700-35,0007,915,933-53,767Dairy Ingredients variance-31400Milk Price Variance-57300Sugar Price Variance-23400Flavors variance35300TOTAL-76800