Can anyone help me with this one I can't get it right.?

Question

Peterson Foods manufactures pumpkin scones. For January 2007,
it budgeted to purchase and use 15,000 pounds of pumpkin at $0.89 a pound. Actual purchases and usage
for January 2007 were 16,000 pounds at $0.82 a pound. It budgets for 60,000 pumpkin scones. Actual output
was 60,800 pumpkin scones.
1. Compute the flexible-budget variance.
2. Compute the price and efficiency variances.
3. Comment on the results in requirements 1 and 2.

Answer 1

I'm no expert in costing, but I'd like to give it a try.
1. Compute the flexible-budget variance
Flexible-budget variance is $656U. They expected to use 15,000 lbs to produce 60,000 scones, but since they produced 60,800 scones, they should increase the flexible budget usage to 15,200 lbs. The flexible budget variance would be (16,000 @ $0.82) - (15,200 @ $0.82) = $656 Unfavorable.

2. Compute the price and efficiency variances
Price variance = (16,000 @ $0.82) - (16,000 @ 0.89) = 1,120 Favorable

Efficiency variance = (16,000 @ $0.89) - (15,200 @ $0.82) = 1,776 Unfavorable

3. Comment on the results in requirements 1 and 2.
The flexible budget variance is the total of the price and efficiency variances. The pumpkin per lb cost less than budgetted so the variance is favorable. Management would ask the question,"Why did it cost less than planned?" This may be due to a price decrease, or the pumpkin was acquired from another source, or lower grade pumpkin was obtained.
The company used more pumpkin than planned so the efficiency variance is unfavorable. Based on the output of 60,800 scones, they shd have used 15,200 lbs but they used 16,000 lbs. Mgt wld want to know why. This could be due to wastage, or less skilled workers were hired.

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Answer 2

damn thats alot of pumpkin

Answer 3

how much you gonna pay me, if I answer to this