Chandler Glower Sdn Bhd manufactures scented candles. The company has the following standard cost information for the month of February:

	Kuantiti Standard/ Standard Quantity	Harga Standard (Kadar)/ Standard Price (Rate)	Kos Standard per unit/ Standard cost per unit
Bahan langsung/Direct material	15 kg	RM0.05 per kg	RM0.75
Buruh langsung/Direct labour	0.25 jam/ hour	RM14 per jam/hour	RM3.50
Overhed pengeluaran berubah/ Variable manufacturing overhead		RM0.40 per jam buruh langsung/ per direct labour hour	RM0.10
Overhed pengeluaran tetap/ Fixed manufacturing overhead (RM10,000/40,000 units)			RM0.25

Chandler Glower Sdn Bhd has the following actual results for the month of February:

Bilangan unit yang dikeluarkan dan djual/ Number of units produced and sold	35,000 unit/units
Bilangan kg bahan langsung yang dibeli dan digunakan/ Number of kgs of direct materials purchased and used	530,000 kg
Kos bahan langsung yang digunakan/ Cost of direct materials used	RM31,800
Bilangan jam buruh langsung yang terlibat/ Number of direct labour hours worked	9,000 jam/hours
Kos buruh langsung/Direct labour cost	RM123,750
Kos overhed berubah/Variable overhead cost	RM3,300
Kos overhed tetap/Fixed overhead cost	RM9,700

Dikehendaki/Required:

Calculate the following variances for Chandler Glower Sdn Bhd:

i)

Direct materials price variance and direct material quantity variance.

(3 markah/marks)

ii)

Direct labour rate variance and direct labour efficiency variance.

(3 markah/marks)

iii)

Variable overhead spending variance and variable overhead efficiency variance.

(3 markah/marks)

iv)

Fixed overhead spending (budget) variance and fixed overhead volume variance.

(4 markah/marks)

v)

Are favourable variances often due to good decision making by our management? Explain and provide examples as justification for your answer.

(2 markah/marks)

(Jumlah/Total: 15 markah/marks)