CONFIDENTIAL BPC 32603 Q4 (a) Z&Z Company produces large size bags for the use of tourists. Company uses standard costing system to control costs. The standards for materials and labour costs to manufacture 1 bag are shown in Table Q4(a) Table Q4(a): Standard cost for Materials and Labour Direct material per unit and price kg/unit Price (RM) per kg Standard unit 7.5 10.8 7.2 Actual unit 11.6 Labor hour/unit Cost per hour (RM) Direct labor per unit and cost Standard unit 0.6 30 0.36 Actual unit 36 Additional information Total Total units produced Total materials purchased 3,750 units 43,500 kg direct labor hours Total direct labor hours used 1,350 Calculate: Direct materials price (5 marks) (ii) Quantity variance (5 marks) (iii) Direct labour rate (5 marks) Efficiency variance (iv) (5 marks) Discuss the purpose of variance analysis. (b) (5 marks) TERBUKA - END OF QUESTIONS CONFIDENTIAL