Peterson Foods manufactures pumpkin scones. For January 2013, it budgeted to purchase and use 16,000 kilograms of
Question:
Peterson Foods manufactures pumpkin scones. For January 2013, it budgeted to purchase and use 16,000 kilograms of pumpkin at $1.11 per kilogram; budgeted output was 60,000 scones. Actual purchases and use for January 2013 was 17,000 kilograms at 0.99 per kilogram; actual output was 60,800 scones.
REQUIRED
1. Calculate the flexible-budget variance.
2. Calculate the price and efficiency variances
3. Comment on the results in requirements 1 and 2.
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Step by Step Answer:
1 The key information items are Peterson budgets to obtain 375 60000 16000 p...View the full answer
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Related Book For 
Cost Accounting A Managerial Emphasis
ISBN: 978-0133392883
6th Canadian edition
Authors: Horngren, Srikant Datar, George Foster, Madhav Rajan, Christ
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