Pikachu Corp. produces and sells one type of metal casting. For the month ended 31 January 2020 the following information had been established: Production and sales 1,100 castings Revenue RM70,950 Material used 33,600 kg at a total cost of RM20,832 Labour hours worked 1,820 hours at a total cost of RM14,742 Variable production overhead incurred RM10,500 Fixed production overhead incurred RM15,500 The following standard and budgeted information is also available: Standard material cost per casting 30 kg at a standard price of RM0.60 per kg Standard labour hour per casting 1.75 hours at a standard rate of RM8.00 per hour Variable production overhead RM6.00 per hour Fixed production overhead RM9.00 per hour Budgeted fixed production overhead RM189,000 per year Budgeted production and sales 1,000 castings per month Budgeted unit selling price RM64 Required: a) Calculate ALL variances and prepare and operating statement for the month ending 31 January 2020 (20 marks) b) Critically evaluate the importance of setting standards in management accounting. (10 marks) Pikachu Corp. produces and sells one type of metal casting. For the month ended 31 January 2020 the following information had been established: Production and sales 1,100 castings Revenue RM70,950 Material used 33,600 kg at a total cost of RM20,832 Labour hours worked 1,820 hours at a total cost of RM14,742 Variable production overhead incurred RM10,500 Fixed production overhead incurred RM15,500 The following standard and budgeted information is also available: Standard material cost per casting 30 kg at a standard price of RM0.60 per kg Standard labour hour per casting 1.75 hours at a standard rate of RM8.00 per hour Variable production overhead RM6.00 per hour Fixed production overhead RM9.00 per hour Budgeted fixed production overhead RM189,000 per year Budgeted production and sales 1,000 castings per month Budgeted unit selling price RM64 Required: a) Calculate ALL variances and prepare and operating statement for the month ending 31 January 2020 (20 marks) b) Critically evaluate the importance of setting standards in management accounting. (10 marks)