Flintstone Rock Company produces a variety of different gravels that are used in roadways and construction....

 

  

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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 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 Budgeted Contribution Margin per Tonne $28 Budgeted Sales Mix Budgeted Sales Volume (in Tonnes) Clear-crush $60 30% 120,000 gravel Pea-gravel Road-base $90 $50 $45 $18 15% 60,000 220,000 55% gravel Actual Contribution Actual Sales mix Actual Sales Volume Actual Selling Price per Tonne Margin per Tonne $65 Product (in Tonnes) 154,000 Clear-crush $30 35% gravel Pea-gravel Road-base gravel $45 $55 $15 18% 47% 79,200 206,800 $100 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) Paragraph BIU 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 Budgeted Contribution Margin per Tonne $28 Budgeted Sales Mix Budgeted Sales Volume (in Tonnes) Clear-crush $60 30% 120,000 gravel Pea-gravel Road-base $90 $50 $45 $18 15% 60,000 220,000 55% gravel Actual Contribution Actual Sales mix Actual Sales Volume Actual Selling Price per Tonne Margin per Tonne $65 Product (in Tonnes) 154,000 Clear-crush $30 35% gravel Pea-gravel Road-base gravel $45 $55 $15 18% 47% 79,200 206,800 $100 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) Paragraph BIU

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