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Posted: April 22nd, 2023
Price and efficiency variances. Peterson Foods manufactures pumpkin scones
7-21 -Price and efficiency variances. Peterson Foods manufactures pumpkin scones. For January 2007, it budgeted to purchase and use 15,000 pounds of pumpkin at $0.89 a pound. Actual purchases and usage for January 2007 were 16,000 pounds at $0.82 a pound. It budgets for 60,000 pumpkin scones. Actual output was 60,800 pumpkin scones.1. Compute the flexible-budget variance.2. Compute the price and efficiency variances.3. Comment on the results in requirements 1 and 2.How can determining the causes of these variances help the company improve?
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