Luxurious Bag Sdn. Bhd. (LBSB) manufactures a line of handbag. At the beginning of 2020, the company revealed the following plans for production and cost:

Standard cost per unit: RM Direct Material 10 Direct Labour 8 Variable Overhead 4 Fixed Overhead 3 Total cost per unit 25 Budgeted units to be produced and sold 25,000 During the year, 30,000 units were produced and sold and the actual costs incurred are as follows: RM Direct Material 320,000 Direct Labour 220,000 Variable Overhead 125,000 Fixed Overhead 89,000 The company's inventory report shows that there were no beginnings or ending inventories of direct materials. The direct materials price variance was RM5,000 unfavourable. In producing the 30,000 units, a total of 39,000 hours were worked. The standard allowed for the actual output is 1.25 hours per unit. Overhead costs are applied to production using direct labour hours