REQUIREMENT 3:

= Homework: C... Question 7, E7-26 (simila... HW Score: 48.89%, 12.22 of 25 points Part 8 of 8 Save Points: 3.22 of 4 Positive Foods manufactures pumpkin scones. For January 2020, it budgeted to purchase and use 16,500 pounds of pumpkin at 50 87 a pound. Actual purcha and usage for January 2020 were 17,000 pounds at 50.82 a pound. Positive budgeted for 66,000 pumpkin scones. Actual output was 57,800 pumpkin scones Read the requirements FEED Flexible Actual Costs Budgeted Price Budget 13,940 $ 14,790 $ 12,572 The price variance is $ 850 F (Label the variance as favorable (F) or unfavorable (U)) The efficiency variance is $ 2,218 U (Label the variance as favorable (F) of unfavorable (U)) Requirement 3. Comment on the results for requirements 1 and 2 and provide a possible explanation for them. The favorable price variance reflects the actual purchase cost being lower than the budgeted purchase cost per pound The unfavorable efficiency variance reflects the actual materials yield being greater than the budgeted yield. The company pumpkins (materials) to make the scenes than was budgeted. used less One explanation may be that Positive purchased lower quality pumpkins at a higher cost per pound. Clear All Check Answ Help Me Solve This e Text Pages Get More Help