Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Flintstone Rock Company produces a variety of different gravels that are used in roadways and construction. Flintstone produces three different gravels for these markets including

image text in transcribed

image text in transcribed

Flintstone Rock Company produces a variety of different gravels that are used in roadways and construction. Flintstone produces three different gravels for these markets including 1) clear-crush, 2) pea-gravel, and 3) road-base. The CEO has discovered that the total contribution margin cam in lower than budgeted. Budgeted and actual operating data for the company's third quarter ended September 30 are as follows: Product Budgeted Selling Price per Tonne $60 Budgeted Contribution Margin per Tonne $28 Budgeted Sales Mix Budgeted Sales Volume (in Tonnes) 30% 120,000 Clear-crush gravel Pea-gravel Road-base gravel $90 $50 $45 $18 15% 55% 60,000 220,000 Actual Sales mix Actual Sales Volume (in Tonnes) 154,000 35% Product Actual Selling Actual Contribution Price per Tonne Margin per Tonne Clear-crush $65 $30 gravel Pea-gravel $100 $55 Road-base gravel $45 $15 18% 47% 79,200 206,800 e total sales-volume contribution margin variance for the third quarter of 2020 is ,578,400 F. quired: Calculate the total sales-mix contribution margin variance for the third quarter of 20. (6 marks) Calculate the total sales-quantity contribution margin variance for the third arter of 2020. (6 marks)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions