Answer Happy

XYZ Company manufactures ice cream for the grocery store retail market. The make over 57 varieties of ice cream available in one-liter tubs. XYZ Company uses standard costing an carries overno inventory. The June 2021 results are as follows: Actual results were 255,500 liters were sold for a total of $12,008,500, the unit variable costs were $8,942,500 with total fixed costs of $2,750,000. The static budget amounts were 245,000 liters of ice cream, with revenues at $11,025,000, variable costs of $8,330,000 and total fixed costs of $2,675,000. The business manager was pleased with the results; however, the manufacturing costs had increased. Required: 1. Preparea performance report that uses a flexible budget and a static budget. (33marks) 2. Comment on the results in #1 (7 marks)