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 requirements

*GIVEN BELOW REQUIREMENTS

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Part 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.

				=	Actual pumpkin costs
				=

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.