Homework: chapter 7 HW Save Score: 0 of 25 pts 3 of 6 (0 complete)> Score: 0%, 0

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Homework: chapter 7 HW Save Score: 0 of 25 pts 3 of 6 (0 complete)> Score: 0%, 0 of 140 pts E7-26 (similar to) EQuestion Help Powerful Foods manufactures pumpkin scones. For January 2017, it budgeted to purchase and use 14,000 pounds of pumpkin at S0.85 a pound. Actual purchases and usage for January 2017 were 14,250 pounds at $0.82 a pound. Powerful budgeted for 56,000 pumpkin scones. Actual output was 51,300 pumpkin scones. Read the requirements Requirement 1. Compute the flexible-budget variance. Let's begin by determining the formula used to calculate the actual pumpkin costs, then enter the amounts in the formula and calculate the cost. -Actual pumpkin costs Requirements 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 Print Done Choose from any list or enter any number in the input fields and then click Check Answer Clear All Check Answer remaining

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Requirement-1 Requirement -2 (a) Actual Pumpkin Cost = Actual Purchase & Use X Rate/Unit Computation of Price Variance 14250 X $0.82 Actual Rate (AR) 0.82/Pound = $11,685.00 Budgeted Rate (SR) 0.85 Actual Quanaity Purchase & use 14250 Budgeted Input Per Pumpkin stone = Budgeted Purchase & Use X Budget Input Price Variance= (SR-AR)Actual Quantity = 14000 / 56000 =(0.85-0.82)14250= $427.50 Favourable = 0.25 Budgeted Cost = Actual Ouput X Rate/Unit X Budgeted Input/Pumpkin Stone Requirement -2 (b) 51300 X 0.85 X 0.25 Computation of Price Variance = $10,901 Actual Quanityt Use 14250 Standard Quantity (51300*0.25) 12825 Flexible Budget Variance = Budgeted Cost - Actual Cost Standard Rate 0.85 = $10,901 - $11,685 Efficiency Variance= (SQ--AQ)SR = -784Unfavourable =(12825-14250)0.85= $1211.25 Un Favourable

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