7-19 Rate and efficiency variances. (LO 2) Doux Dulce manufactures kale salads. For January, it budgeted to purchase and use 20,000 kilograms of kale at $1.18 per kilogram; budgeted output was 70,000 salads. Actual purchases and use for January were 21,000 kilograms at $1.10 per kilogram; actual output was 71,400 salads. Required 1. Calculate the flexible-budget variance. 2. Calculate the price and efficiency variances. 3. Comment on the results in requirements 1 and 2.

7-19 Rate and efficiency variances. (LO 2) Doux Dulce manufactures kale salads. For January, it budgeted to purchase and use 20,000 kilograms of kale at $1.18 per kilogram; budgeted output was 70,000 salads. Actual purchases and use for January were 21,000 kilograms at $1.10 per kilogram; actual output was 71,400 salads. Required 1. Calculate the flexible-budget variance. 2. Calculate the price and efficiency variances. 3. Comment on the results in requirements 1 and 2