Answer the question. Question 2 Daniel D has just been promoted as an assistant management accountant in PCC Co. The company manufactures a single product and operates a marginal costing system. Daniel D is required to prepare the monthly operating statement for May 2021. Detailed below is the budgeted and actual data for the month ended 31 May 2021: Budgeted and standard cost data: Budgeted sales and production for the month: 10,500 units Standard cost for each unit of product: Direct material I 2kg at RM10.50 per kg Direct material II 1kg at RM15 per kg Direct labour 3 hours at RM9.50 per hour Variable overhead 3 hours at RM2 per direct labour hour Budgeted fixed overheads per month RM125,000 The standard selling price per unit is RM89. Actual data for the month ended 31 May 2021: Actual sales and production for the month: 9,500 units Direct materials I consumed 20,000kg at RM11.50 per kg Direct materials II consumed 10,000kg at RM14 per kg Direct labour incurred 29,000 hours at RM9.60 per hour Variable overheads incurred RM55,000 Fixed overheads incurred RM119.000 Each unit of product was sold at RM90. Overheads are charged to production on the basis of direct labour hours. Required: Prepare the monthly operating statement for the month ended 31 May 2021 for Daniel D. In the operating statement, complete the following: - (a) Using the data given, calculate the budgeted and actual profits for PCC Co. (8 marks) (6) Calculate the variances for direct materials; direct labour; overheads; and sales. (11 marks) (c) Discuss briefly the possible causes for the variances computed in (b). (6 marks) [Total: 25 Marks)