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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
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 Budgeted Sales Mix Budgeted Sales Volume (in Tonnes) per Tonne $28 30% 120,000 Clear-crush gravel Pea-gravel Road-base gravel $90 $50 $45 $18 15% 55% 60,000 220,000 Product Actual Selling Actual Contribution Actual Sales mix Actual Sales Volume Price per Tonne Margin per Tonne (in Tonnes) Clear-crush $65 $30 35% 154,000 gravel Pea-gravel $100 18% $55 79,200 Road-base gravel $45 $15 47% 206,800 The total sales-volume contribution margin variance for the third quarter of 2020 is $1,578,400 F. Required: 1). Calculate the total sales-mix contribution margin variance for the third quarter of 2020. (6 marks) 2). Calculate the total sales-quantity contribution margin variance for the third quarter of 2020. (6 marks) A Paragraph V V 0 BI U
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