Please help me with this problem. Thanks in advance! 7.19 Price and efficiency deviations. Peterson Foods makes pumpkin pies. For January 2004, the company budgeted to buy and use 15,000 kg ofpumpkin at $0.89/kg. Quantities that actually were purchased and consumed were 16,000 kg at $0.82/kg. The budgeted production is 60,000pies. Actual production was 60,800 pies.Request1. Calculate deviation from flexible budget provisions.2. Calculate price and efficiency deviations.3. Comment on the results in paragraphs 1 and 2.

There are always deviations from budgeted provisions and actual expenditure and production.

Answered: 1. Calculate deviation from flexible…

1. Calculate deviation from flexible budget provisions. 2. Calculate price and efficiency deviations. 3. Comment on the results in paragraphs 1 and 2.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 12PB: Before the year began, the following static budget was developed for the estimated sales of 50,000....

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Please help me with this problem. Thanks in advance!

7.19 Price and efficiency deviations. Peterson Foods makes pumpkin pies. For January 2004, the company budgeted to buy and use 15,000 kg of
pumpkin at $0.89/kg. Quantities that actually were purchased and consumed were 16,000 kg at $0.82/kg. The budgeted production is 60,000
pies. Actual production was 60,800 pies.
Request
1. Calculate deviation from flexible budget provisions.
2. Calculate price and efficiency deviations.
3. Comment on the results in paragraphs 1 and 2.

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