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Business, 22.02.2021 19:00 carolina1636
Peterson Foods (PF) manufactures pumpkin scones. For January 2020, it budgeted $20,000 to purchase 12,500 pounds of pumpkin. PF actually purchased 13,000 pounds at $1.72 per pound. Peterson Foods started this year with 2,000 pounds of pumpkin. At the end of January, there were 4,000 pounds of pumpkin left in raw materials inventory. PF budgeted to make 50,000 scones using 12500 pounds of pumpkin but actually made 48,000 scones.
Required:
a. Compute the flexible-budget variance.
b. Compute the price and efficiency variances.
c. Comment on the results for requirements 1 and 2 and provide a possible explanation for them.
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Peterson Foods (PF) manufactures pumpkin scones. For January 2020, it budgeted $20,000 to purchase 1...
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