Sunshine Foods manufactures pumpkin scones. For January 2017, it budgeted to purchase and use 14,750 kilograms of
Question:
Sunshine Foods manufactures pumpkin scones. For January 2017, it budgeted to purchase and use 14,750 kilograms of pumpkin at $0.92 a kilogram. Actual purchases and usage for January 2017 were 16,000 kilograms at$0.85 a kilogram. Sunshine budgeted for 59,000 pumpkin scones. Actual output was 59,200 pumpkin scones.
Required
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.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Horngrens Cost Accounting A Managerial Emphasis
ISBN: 978-0134453736
8th Canadian Edition
Authors: Srikant M. Datar, Madhav V. Rajan, Louis Beaubien
Question Posted: