For the purposes of the variance questions (and only the variance questions), assume that all of Flowers revenues of $3,951,852,000 and costs come from selling bread, which is obviously not true. Its budgeted revenues were $3,920,733,000.

The firm anticipated (budgeted) an average wholesale price (what they receive from the grocery stores) of $2 per loaf of bread). They ended up receiving $2.036 per loaf of bread. [We could give them information on the quantities but that should not be necessary.

Flowers budget included ingredient costs of $968,421,051. Assume that flour is the only ingredient necessary for making bread. Assume that the budgeted cost of flour was 50 cents per pound and the actual cost was 51 cents per pound. You can calculate the actual 2018 ingredient costs and other necessary information.

1. Perform a complete variance analysis for the revenues for Flowers.

2. Perform a complete variance analysis for the total cost of the ingredients. Show all your steps.

3. Variance analysis is often the first step in a process of figuring out what happened in the firm in a year and why. That information can then be used to make better decisions going forward. With the information from the revenue and cost variances, identify a question that you would want to ask to understand the results. Also identify where (to what department) within the firm you would want to direct the question. Explain why the answer to that question would help clarify what happened. Also explain how the answer to the question might help lead to better decisions going forward.