(SOLVED) Ched Ltd manufactures Cheddar cheese pies For January 2008 it


Question Description:

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Ched Ltd manufactures Cheddar cheese pies. For January 2008, it budgeted to purchase and use 15 000 kg of Cheddar cheese at £0.89 per kg; budgeted output was 60 000 pies Actual purchase and use for January 2008 was 16 000 kg at £0.82 per kg; actual output was 60800 pies.
Required
1. Calculate the flexible-budget variance.
2. Calculate the price and efficiency variances.
3. Comment on the results in requirements 1 and 2.

Answer

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