7-26 Price and efficiency variances. Sunshine Foods manufactures pumpkin scones. For January 2017, it budgeted to purchase and use 14.750 pounds of pumpkin at $0.92 a pound. Actual purchases and usage for January 2017 were 16,000 pounds at $0.85 a pound. Sunshine budgeted for 59.000 pumpkin scones. Actual output was 59.200 pumpkin scones, Required: 1. Compute the flexible budget variance. 2. Compute the price and efficiency variances. 3. Comment on the results for requirements 1 and 2 and provide a possible explanation for them