4. Buru Wang Sdn. Bhd. (BWSB) is a manufacturing company that produces a special smart machine. BWSB budgets to produce and sell 20,000 units of smart machine in April 2021. The standard information for the smart machine is as follows:

Direct materials (3 kg @ RM1.50 per kg) 4.50

Direct labour (4 hours @ RM4 per hour) 16.00

Variable overheads (4 hours @ RM3 per direct labour hour) 12.00

Fixed overheads (4 hours @ RM6 per direct labour hour) 24.00

Standard selling price 80.00

The actual results for April:

Sales (19,000 @ RM82 per unit) 1,558,000

Direct materials (55,000 kg @ 1.25 per kg) 68,750

Direct labour (92,000 hours @ RM3.50 per hour) 322,000

Variable overheads (92,000 hours @ RM2.75 per hour) 253,000

Fixed overheads 420,000

In April, 19,000 units of smart machine were produced and sold.

Required:

(a) Calculate:

(i) price and usage variances for materials.

(ii) wage rate and efficiency variances for direct labour.

(iii) expenditure and efficiency variances for variable overhead.

(iv) expenditure and volume variances for fixed overhead.

(b) Based on your calculations in part (a) above, provide one possible reason for each variance for materials, labour and overhead.

(7 marks)