May 2018 was as follows: Description Wood Direct labour RM3.50 per kg Overhead are absorbed on the basis of labour hours. Actual result for Quantity Price per unit RM 80,000 kgs 280,000 16,000 RM7 per hour 112,000 hours 60,000 196,000 3,600 units 648,000 Variable overhead Fixed overhead Total production cost Sales 3,600 units 810,000 Actual profit 162,000 Required to calculate the following variances, indicating whether each is favourable (F) or unfavourable (UF): (a) Direct material price. (3 marks) D) Direct material usage. (3 marks) (c) Direct labour rate. (3 marks) (0) Direct labour efficiency. (3 marks) (e) Variable overhead expenditure. (4 marks) 1 Variable overhead efficiency. (4 marks) Briefly explain TWO (2) possible causes for material price variances. (4 marks) 2. Jati Sdn. Bhd. makes quality wooden benches for both internal market and internationally. The budgeted output and sales for May 2018 was 4,000 benches and the standard cost card per unit below was calculated on this basis: Description Quantity Price per unit RM Wood 25 kgs RM3.20 per kg 80 Direct labour 4 hours RM8 per hour Variable overhead 4 hours RM4 per hour Fixed overhead 4 hours 64 RM16 per hour 220 Selling price 28 Standard profit 32 16