Ched Ltd manufactures Cheddar cheese pies. For January 2018, 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 2018 was 16,000 kg at £0.82 per kg; actual output was 60,800 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.