Ashoka & Ronald Bhd. produces a single product for its overseas market. For control purposes, a standard costing system was recently introduced and has been in operation since the last one month.

The details of the standard costs for the month of September 2015 are as follows:

Production & Sales : 1,500 units

Selling Price (per unit) : RM 1,800

Materials : 20 kg per unit at RM40 per kg

labour : 5 hours per unit at RM80 per hour

Variable Overhead : 5 hours per unit at RM30 per hour

Fixed Overhead : RM 450,000 per month =SR = 450,000/(1500X5HOURS)=RM60

The actual data for the month of September 2015 is as follows:

Produced : 1,450 units and sold at RM2,000 per unit =2,900,000

Material : Used 30,000kg of material at a total cost of RM 1,320,000

Labour : Paid RM 84 per hour to the labour force. The total amount paid out amounted to RM 672,000

Overheads

Variable : RM 220,000

Fixed : RM 520,000

ACTUAL PROFIT =2900000-1320000-672,000-220,000-520,000=168,000

Required:

(a) Calculate the standard cost for a unit produced by Ashoka & Ronald Bhd.

(b) Calculate the following variances:

1. Material Price Variance
2. Material Usage Variance
3. Labour Rate Variance
4. Labour Efficiency Variance
5. Variable Overhead Expenditure Variance
6. Variable Overhead Efficiency Variance
7. Fixed Overhead Expenditure Variance
8. Fixed Overhead Efficiency Variance
9. Fixed Overhead Capacity Variance
10. Sales Price Variance
11. Sales Volume Variance