1. Hijau Sdn. Bhd. has the following standard cost for its product, Hott:

Direct Material	5 kg X RM28 per kg
Direct Labour	6.5 hours X RM33 per hour

Additional information for the month of January 2020 is as follows:

Units made	1,300 units
Direct material bought	2,450 kg for RM63,700
Direct material used	7,100 kg 3/9
Direct labour	6,300 hours (direct labour cost of RM195,300)

(a) Provide formula and calculate the following variances. Determine whether each variance is Favourable (F) or Unfavourable (U): (12marks)

i. direct material price variance

ii. direct material quantity variance

iii. direct labour rate variance

iv. direct labour efficiency variance

(b) Discuss the reasons for favourable direct labour efficiency variance to occur. (4marks)

(c) Explain the usefulness of variance analysis to the management of Hijau Sdn. Bhd. (4marks)