Bolt manufactures steel bolts for commercial building construction. Bolt makes three types of bolts 1/8-inch, 1/4 inch and 1/2 inch. Actual and Budget operating data by product for the most recent reporting period are as follows: ACTUAL BUDGET 1/8 1/4 1/2 1/8 1/4 1/2 Sales-# units 84 126 210 200 100 200 Price / unit $25 $32 $45 $20 $30 $40 Var. Cost / unit $16 $18 $22 $15 $17 $20 a. Calculate the sales-mix variance for each product and in total. b. Calculate the sales-quantity variance for each product and in total. c. Provide an explanation for what is driving the sales-mix variance. Discuss an issue, not the numerical variance amounts.

Continuing with Bolt data in the previous problem, assume Bolt budgeted a 10.0% share sales of total bolt products in the local market. Reliable industry data indicates that the actual total number of bolt products sold in the market during same period was 5,250. a. The firm's market share variance based on contribution margin for the period is: 1) $6,615 Fav 2) $1,323 Unfav 3) $1,523 Unfav 4) $ 966 Fav b. The firm's market size variance based on contribution margin for the period is: 1) $ 144 Fav 2) $1,523 Unfav 3) $1,008 Unfav 4) $ 315 Fav