Question 07: Concrete Products Ltd manufactures heavy paving slabs for sale to local authorities and garden paving slabs for domestic use. The board of directors meets early in each month to review the company's performance during the previous month. In advance of each meeting, the directors are presented with a computer printlout summarising the activity of the previous month. The computer print-out in respect of the month of December Year 3 is set out below: Heavy paving Garden paving Actual tonnes Budget tonnes Actual tonnes Budget tonnes Sales volume 29,000 21,500 10,500 8,500 Production 29,000 27,500 10,500 0,500 volume Revenue 690,000 430,000 300,000 Variable cost of 2?0 000 170,000 12?,000 sales Contribution 420,000 250,000 173,000 Further information a The actual fixed costs incurred during the month equalled the budgeted fixed costs of $310,000. 0 Stocks are valued at standard cost. You have recently been appointed a director of Concrete Products Ltd. At an earlier meeting with the finance director you received an explanation of the basis for the company's monthly budget and you are satised that the budget has been prepared on a realistic basis