Queation Help pumpkin scones. For January 2012, t budgeted to purchase and use 1

Question

Queation Help pumpkin scones. For January 2012, t budgeted to purchase and use 14,250 pounds of pumpkin at $0.88 a pound. Acthual purchases and usage for January 2012 woro 14,750 pounds at $0.85 a pound t budigets for 57,000 pumpkin scones Actual oulput was 546,060 pumpkin soones. 1 Compute the fexible budget variance. 2. Compule the price and efficiency vars Requirement 1. Compute the fexible budget valiance Lef's begin by determining the fomula uned to calculate the actual pumpkin oosts, then enter the amounts in the formula and calculate te cost (Round your answer lo the nearest whole dollar) Now delermine the formula and caloulate the pumpkin cests that will be found in the static budget column of your analysis. (Round your anewer to the earetwhole dolar) Static budget pumpkin costs Detemine the formala and caloulate the pumpkin coss for the flexible budget (Round output caloudlations to the nearest whole number Round your final answer to the nearest whole dole) lexible budget pumpkin c Achual Flexible-Budget Flexible Sales VolumeS Varianee Budget Variance Budget Pumpkin costs

Explanation / Answer

1.

2.

Price variance = (Actual Input Qty x Budgeted Price) - Actual costs

= 12980 - 12538 = $442 F

Efficiency variance = Flexible budget costs - (Actual Input Qty x Budgeted Price)

= $12331 - $12980 = $649 U

Actual purchases x Actual rate = Actual pumpkin costs 14750 x $0.85 = $12538

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