Cahaya Berhad uses an automated manufacturing process to produce a single product, QBEST. The firm operates a standard absorption costing system. The standard cost data for one unit of QBEST is as follows: RM Material A 5 kgs at RM8 per kg 40 Material B 3 kgs at RM5 per kg 15 Material C 2 kgs at RM2 per kg 4 Skilled labour 5 hours at RM15 per hour 75 Unskilled labour 3 hours at RM8 per hour 24 Variable overhead 18 Fixed overhead 10 The budgeted monthly production is 10,000 units. The actual production during the first period was 8,500 units and the details of actual expenditure incurred were as follows: Material usage and cost: Kgs RM A 39,040 273,280 B 38,250 153,000 C 32,910 98,730 Labour hours and cost: Hrs RM Skilled labour 20,000 340,000 Unskilled labour 10,000 60,000RM Variable overhead cost 127,500 Fixed overhead cost 102,000 During the period, one of the machines was broke-down. Due to that problem, production process changed to labour oriented. This has resulted to an increase in one (1) hour skilled labour and two (2) hours for unskilled labour. The labour rate has increased by 20% for both types of labour