Aromatic Coffee Inc

question 100

Essay

Aromatic Coffee Inc..sells two types of coffee,Colombian and Blue Mountain.The monthly budget for U.S.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 U.S.market.The following information is provided for March:

Budgeted and actual fixed corporate-sustaining costs are $60,000 and $72,000,respectively.
Required:
a.Calculate the actual total contribution margin for the month.
b.Calculate the total contribution margin for the static budget.
c.Calculate the total contribution margin for the flexible budget.
d.Determine the total static-budget variance,the total flexible-budget variance,and the total sales-volume variance in terms of the contribution margin.

---

Definitions:

Cafeteria Department

A functional division within an organization that provides food and beverage services to employees.

Reciprocal Services Method

A cost allocation technique used in managerial accounting to allocate costs between interdependent departments by solving simultaneous equations.

Sequential Method

A cost allocation method used for assigning the costs of support departments to operating departments sequentially, in a specific order based on the level of service provided.

Algebraic Expressions

Mathematical phrases that can contain ordinary numbers, variables, and mathematical operations, but do not have an equality sign.