Price and efficiency variances. Peterson Foods manufactures pumpkin scones. For January 2010, it budgeted to purchase and use 16,000 kilograms of pumpkin at $1.11 per kilogram; budgeted output was 60,000 scones. Actual purchases and use for January 2010 was 17,000 kilograms at 0.99 per kilogram; actual output was 60,800 scones. REQUIRED 1. Calculate the flexible-budget variance. 2. Calculate the price and efficiency variances 3. Comment on the results in requirements 1 and 2.

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