Reference no: EM132771789

For the purposes of the variance questions (and only the variance questions) , assume that all of Flowers' revenues of $3,951,852,000 and costs come from selling bread, which is obviously not true. Its budgeted revenues were $3,920,733,000.

The firm anticipated (budgeted) an average wholesale price (what they receive from the grocery stores) of $2 per loaf of bread). They ended up receiving $2.032 per loaf of bread.

Problem 1: Flowers' budget included ingredient costs of $968,421,051. Assume that flour is the only ingredient necessary for making bread. Assume that the budgeted cost of flour was 50 cents per pound and the actual cost was 51.2 cents per pound. You can calculate the actual 2018 ingredient costs and other necessary information.