Price and efficiency variances
Not what you're looking for?
Peterson Foods manufactures pumpkin scones. For January 2007, it budgeted to purchase and use 15,000 pounds of pumpkin at $0.89 a pound. It budgets for 60,000 pumpkin scones.
Actual purchases and usage for January 2007 were 16,000 pounds at $0.82 a pound. 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.
Purchase this Solution
Solution Summary
This solution is comprised of a detailed explanation to compute the flexible-budget variance and the price and efficiency variances and comment on the results in requirements 1 and 2.
Solution Preview
Peterson Foods manufactures pumpkin scones. For January 2007, it budgeted to purchase and use 15,000 pounds of pumpkin at $0.89 a pound. It budgets for 60,000 pumpkin scones.
Actual purchases and usage for January 2007 were 16,000 pounds at $0.82 a pound. Actual output was 60,800 pumpkin scones.
1. Compute the flexible-budget variance.
Actual cost Budgeted Costs Total Difference
Direct Materials 13,120 13,350 230 F
2. ...
Purchase this Solution
Free BrainMass Quizzes
Basic Social Media Concepts
The quiz will test your knowledge on basic social media concepts.
Paradigms and Frameworks of Management Research
This quiz evaluates your understanding of the paradigm-based and epistimological frameworks of research. It is intended for advanced students.
Six Sigma for Process Improvement
A high level understanding of Six Sigma and what it is all about. This just gives you a glimpse of Six Sigma which entails more in-depth knowledge of processes and techniques.
Managing the Older Worker
This quiz will let you know some of the basics of dealing with older workers. This is increasingly important for managers and human resource workers as many countries are facing an increase in older people in the workforce
Operations Management
This quiz tests a student's knowledge about Operations Management