Required

Compute the flexible$-$budget variance.

Compute the price and efficiency variances.

Comment on the results for requirements $1$ and $2$ and provide a possible

explanation for them.Paulson Foods manufactures pumpkin scones. For January, it budgeted to purchase and use $14,000$ kilograms of

pumpkin at $$0\mathrm{.}85$ a kilogram. Actual purchases and usage for January were $14,250$ kilograms at $$0\mathrm{.}82$ a kilogram.

Paulson budgeted for $56,000$ pumpkin scones. Actual output was $51,300$ pumpkin scones.

Requirement $1.$ Compute the flexible$-$budget variance.

Let's begin by determining the formula used to calculate the actual pumpkin costs, and then enter the amounts in the

formula and calculate the cost.

Compute the flexible$-$budget variance.

Compute the price and efficiency variances.

Comment on the results for requirements $1$ and $2$ and provide a possible

explanation for them.