Perfecto Foods manufactures pumpkin scones. For January 2017, it budgeted to purchase and use 16,500 pounds of pumpkin at $0.87 a pound. Actual purchases and usage for January 2017 were 17,000 pounds at $0.82 a pound. Perfecto budgeted for 66,000 pumpkin scones. Actual output was 57,800 pumpkin scones. Read the requirements. Budgeted input for actual output Budgeted cost per pound = Flexible budget pumpkin costs 12572 14450 0.87 Now enter the amounts above into the analysis and determine the flexible-budget variance. (Round your answers to the nearest whole dollar. Label each variance as favorable (F) or unfavorable (U).) Actual Flexible-Budget Flexible Sales-Volume Static Results Variance Budget Variance Budget Pumpkin costs Requirement 2. Compute the price and efficiency variances. Begin by completing the following table. (Round your answer to the nearest whole dollar. Abbreviation used: Qty = quantity) Actual Input Qty Actual Flexible Costs Budgeted Price Budget The price variance is $ 850) F. (Label the variance as favorable (F) or unfavorable (U).) The efficiency variance is $ 2219 U. (Label the variance as favorable (F) or unfavorable (U).) P7-35 (similar to) Formula labels Jennifer Bailey has run Handy Maids, a specialty cleaning service for medical and dental offices, for the past 10 years. Her static budget and actual results for April 2017 are shown below. (Click the icon to view the actual and budgeted income statements.) (Click the icon to view the employe Read the requirements. Requirement 1. How many offices, on average, did Bailey budget for each employee? How many offices did each employee actually clean? Determine the formula to show how many offices, on average, the employees cleaned. (X = number of offices cleaned by experienced employee, Y = nd (Click the icon for information regarding the formula selections.) A Contribution margin B Labor costs C Operating income D Revenue E Wage paid to experienced employee per office F Wage paid to less experienced employees per office E ) + F Y ) = B Next, calculate the budgeted and actual number of offices for each employee type. Print Done Budgeted Actual number of offices number of offices Experienced employee Less experienced employees Actual and Budgeted Income Statements For the Month Ended April 30, 2017 Budget Actual Requirements 250 280 Offices cleaned $ 40,000 S 53,200 Revenue Variable costs: Costs of supplies 1. 1,950 2. 3. 1,750 6,500 Labor 7,200 How many offices, on average, did Bailey budget for each employee? How many cars did each employee actually detail? Prepare a flexible budget for April 2017 Compute the sales price variance and the labor efficiency variance for each labor type. What information, in addition to that provided in the income statements, would you want Bailey to gather, if you wanted to improve operational efficiency? 8,250 9,150 4. Enter any number in the edit fields and then click Total variable costs Contribution margin 31,750 9,400 44,050 9,400 Fixed costs 6 parts remaining $ 22,350 S 34,650 Operating income
