CoursHeroTranscribedText: 7-26. PRICE AND EFFICIENCY VARIANCES. Sunshine Foods manufactures pumpkin scones. For Ianuary 2020, it...
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CoursHeroTranscribedText: 7-26. PRICE AND EFFICIENCY VARIANCES. Sunshine Foods manufactures pumpkin scones. For Ianuary 2020, it budgeted to purchase and use 14,750 pounds of pumpkin at $0.92 a pound. Actual purchases and usage for January 2020 were 16,000 pounds at $0.85 a pound. Sunshine budgeted for 59,000 pumpkin scones. Actual output was 59,200 pumpkin scones. Required 1. Compute the exiblebudget variance. 2. Compute the price and efficiency variances. 3. Comment on the results for requirements 1 and 2 and provide a possible explanation for them
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