iv. V. The actual direct labour hours: The actual direct labour cost; The actual variable overhead cost; The actual fixed overhead cost. vi vii. Question 2 HB makes and sells a single product. The company operates a standard marginal costing system and a just-in-time purchasing and production system. No inventory of raw materials or finished goods is held. Details of the budget and actual data for the previous period are given below: Budget data Standard production costs per unit: Direct material 8kg @ RM10.80 per kg Direct labour 1.25 hours @ RM18.00 per hour Variable overheads 1.25 hours @ RM6.00 per direct labour hour RM 86.40 22.50 7.50 Standard selling price: RM180 per unit Budgeted fixed production overheads: RM170 000 Budgeted production and sales: 10 000 units Actual data Direct material: 74 000kg @RM11.20 per kg Direct labour: 10 800 hours @ RM19.00 per hour Variable overheads: RM70 000 Actual selling price: RM184 per unit Actual fixed production overheads: RM168 000 Actual production and sales: 9000 units Required: Prepare a statement using marginal costing principles that reconciles the budgeted profit and the actual profit. Your statement should show the variances in as much detail as possible. Question 3 Valet Co is a cat' valcting (cleaning) company. It operates in the country of Strappia, which has been badly affected by the global financial crisis. Petrol and food prices have increased substantially in the last year and the average disposable household income has decreased by 30 per cent. Recent studies have shown that the average car owner keeps their car for five years before replacing it, rather than three years as was previously the case. Figures over recent years also show that car sales in Strappia are declining whilst business for car repairs is on the increase Valet Co offers two types of valet - a full valet and a inini valet. A full valet is an extensive clean of the vehicle, inside and out; a mini valet is a more basic clean of the vehicle. Until recently, four similar businesses operated in Valet Co's local area, but one of these closed down three months ago after a serious fire on its premises. Valet Co charges customers RM50 for 2