Paulson Foods manufactures pumpkin scones. For January, it budgeted to purchase and use 14,000 kilograms of pumpkin at $0.85 a kilogram. Actual purchases and usage for January were 14,250 kilograms at $0.82 a kilogram. Paulson budgeted for 56,000 pumpkin scones. Actual output was 51,300 pumpkin scones. Required 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. X X = Actual pumpkin costs

Cornerstones of Cost Management (Cornerstones Series)
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ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
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Chapter18: Pricing And Profitability Analysis
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Paulson Foods manufactures pumpkin scones. For January, it budgeted to purchase and use 14,000 kilograms of
pumpkin at $0.85 a kilogram. Actual purchases and usage for January were 14,250 kilograms at $0.82 a kilogram.
Paulson budgeted for 56,000 pumpkin scones. Actual output was 51,300 pumpkin scones.
Required
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.
X
X
=
Actual pumpkin costs
==
Transcribed Image Text:Paulson Foods manufactures pumpkin scones. For January, it budgeted to purchase and use 14,000 kilograms of pumpkin at $0.85 a kilogram. Actual purchases and usage for January were 14,250 kilograms at $0.82 a kilogram. Paulson budgeted for 56,000 pumpkin scones. Actual output was 51,300 pumpkin scones. Required 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. X X = Actual pumpkin costs ==
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