Maurice Tutor

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Category > Management Posted 06 Nov 2017 My Price 4.00

Sunshine Foods

Price and efficiency variances. Sunshine Foods manufactures pumpkin scones. For January 2017, it budgeted to purchase and use 14,750 pounds of pumpkin at $0.92 a pound. Actual purchases and usage for January 2017 were 16,000 pounds at $0.85 a pound. Sunshine budgeted for 59,000 pumpkin scones. Actual output was 59,200 pumpkin scones.

1. Compute the flexible-budget variance.

2. Compute the price and efficiency variances.

3. Comment on the results for requirements 1 and 2 and provide a possible explanation for them.

 

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Maurice Tutor
(5)
Status NEW Posted 06 Nov 2017 09:11 PM My Price 4.00

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