Powerful Foods manufactures pumpkin scones. For January 2020 , it budgeted to purchase and use 15,750 pounds of pumpkin at S0.90 a pound. Actual purchases and usage for January 2020 were 16,750 pounds at $0.84 a pound. Powerful budgeted for 63,000 pumpkin scones. Actual output was 60,300 pumpkin scones. Read the requirement 1 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 =Actualpumpkincosts= Now determine the formula and calculate the pumpkin costs that will be found in the static budget column of your analysis. =Staticbudgetpumpkincosts= Determine the formula and calculate the pumpkin costs for the flexible budget. (Round your answer to the nearest whole dollar.) =Flexiblebudgetpumpkincosts= 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).) Requlrement 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) The price variance is (9) (Label the variance as favorable (F) or unfavorable (U)) The efficiency variance is (Label the variance as favorable ( F ) or unfavorable (U).) Requirement 3. Comment on the results for requirements 1 and 2 and provide a possible explanation for them. The price variance reflects the actual purchase cost being the budgeted purchase cost per pound. The efficiency variance reflects the actual materials yield being the budgeted yield. The company used pumpkins (materials) to make the scones than was budgeted. One explanation may be that Powerful purchased quality pumpkins at a cost per pound. 1: 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. (1) Budgeted input Actual cost per pound Budgeted input for actual output Actual input Budgeted cost per pound (2) Budgeted input Actual cost per pound Budgeted input for actual output Actual input Budgeted cost per pound (3) Budgeted input Actual cost per pound Budgeted input for actual output Actual input Budgeted cost per pound (4) Budgeted input Actual cost per pound Budgeted input for actual output Actual input Budgeted cost per pound (5) Budgeted input Actual cost per pound Budgeted input for actual output Actual output Budgeted cost per pound (6) Budgeted input (7) (8) (9) (10) Actual cost per pound Budgeted input for actual output U U F F. Actual output Budgeted cost per pound (11) (12) (13) (14) (15) favorableunfavorablehigherthanlowerthanfavorableunfavorablegreaterthanlessthanlessmore (16) (17) higher higher lower lower
