Happy Blooms Sdn Bhd has developed the following data for its product named HB for the year 2022: The budgeted selling price per unit of HB is RM70. It is estimated that the company would produce and sell 35,000 units of HB during 2016. Both variable production overhead and fixed production overhead are absorbed based on direct labour hours. At the end of the year 2022, the management accountant has managed to compile the following actual information. 1. 140,000kg of direct materials were purchased during the year at a total cost of RM770,000. However, only 135,000kg were actually used in the production. 2. Actual direct labour costs were RM729,600. The actual rate paid to the direct labours was RM5.70 per hour. 3. Actual variable production overhead incurred for the year was RM413,000 while the actual fixed production overhead incurred was RM235,000. 4. During the year, the actual production units were 32,500 units. 5. The company managed to sell 31,800 units of HB during the year and they were sold at the price of RM72.50 per unit. Required: a. State FOUR (4) advantages of standard costing b. List down TWO (2) reasons for each of the following variances. (4 marks) i. Material price (adverse) ii. Material usage (adverse) iii. Labour efficiency (adverse) c. Compute the following variances: (6 marks) i. Direct material price ii. Direct material usage iii. Direct labour rate iv. Variable production overhead efficiency v. Fixed production overhead volume vi. Sales price Page 4 of 6