BB Co. is a product manufacturer. It operates a standard marginal cost accounting system. Given below, is information relating to one of its products, which is made in one of the company departments:- Product Direct material (6 kgs at RM4 per kg) Direct labour (1 hour at RM7 per hour) Standard marginal product cost per/unit (RM) 24 Variable production overhead 34 Additional information Variable production overhead varies with direct labour hours of input. Budgeted fixed production overhead per month is RM100,000. Budgeted production is 20,000 units per month. Actual production and costs for one of the months for 18,500 units of product were as follows: Direct materials purchased and used, 113,500kg Direct labour, 17,800 hours Variable production overhead incurred Fixed production overhead incurred (RM) 442,650 129,940 58.800 104,000 735.390 Required: (a) Compute the following variances: (1) Material price variance marks) (ii) Material usage variance marks) (iii) Wage rate variance marks) (iv) Labour efficiency variance marks) (v) Variable overhead expenditure variance marks) (vi) Variable overhead efficiency variance marks) (b) Briefly analyse the possible causes of the variances in part (a) above. (13 marks) [Total: 25 Marks]