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university of southern california Operations And Supply Chain Management Assignment Help - Price and efficiency variances

Question - Price and efficiency variances. Peterson Foods manufactures pumpkin scones. For January 2009, it budgeted to purchase and use 15000 pounds of pumpkin at $0.89 a pound. Actual purchases and usage for January 2009 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 above results and provide a possible explanation for them.

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