Ched Ltd manufactures Cheddar cheese pies. For January 2019, it budgeted to purchase and use 15,000 kg of Cheddar cheese at Rs. 0.89 per kg; budgeted output was 60,000 pies. Actual purchase and use for January 2019 was 16,000 kg at Rs. 0.82 per kg; actual output was 60,800 pies.(20)

Required

i.Calculate the flexible-budget variance.

ii.Calculate the price and efficiency variances.

iii.Comment on the results in requirements 1 and 2.