=+11-26 KK Price and efficiency variances OBJECTIVES 4, 5 Flo’s Pantry manufactures pumpkin scones. For January, it budgeted to purchase and use 2000 kg of pumpkin at $0.93 a kilogram.

January was a particularly wet month which affected the price and quality of the pumpkins. Actual purchases and usage for January were 1900 kg at $1.35 a kilogram. It budgets for 52000 pumpkin scones. Actual output was 49000 pumpkin scones.

Required 1 Calculate the flexible-budget variance.