7.3 - Foods manufactures pumpkin scones. For January 2020, it budgeted to purchase and use 14,000 pounds of pumpkin at $0.85 a pound. Actual purchases and usage for January 2020 were 14,250 pounds at $0.82 a pound. Powerful budgeted for 56,000 pumpkin scones. Actual output was 51,300 pumpkin scones.

Powerful Foods manufactures pumpkin scones. For January 2020 , it budgeted to purchase and use 14,000 pounds of pumpkin at $0.85 a pound. Actual purchases and usage for January 2020 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 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. 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