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Question - 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.
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