Peterson Foods manufactures pumpkin scones. For January 2015, 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 2015 were 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.