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Question 2 Roti Boom Bhd. (RBB) is a company in Kuala Lumpur that produces and sells a variety of dough breads to restaurants, pizzerias, etc. in packs (the product). The accounts department uses marginal costing principle and produces a monthly budget based on the production and sale of 1,800 units of the products as follows: RM per unit Selling price Less: Labour costs (8 hours x RM12) (5.2 kg RM20/kg) Fixed overheads 230 320 96 104 Materials costs 30 Profit 90 The actual data related to the production and sales of 2,000 units for the month have been recorded as follows: RM 700,000 Sales Costs: Labour costs Material costs Fixed Overheads Profit 22.500 hours 10,760 kg 315.000 269,000 50,000 634.000 66,000 Required: (a) Calculate the following variances for the month: (1) Material price, usage and cost variances. (5 marks) (m) Labour rate, efficiency and cost variances. (5 marks) (1) Fixed overhead expenditure variances. (3 marks) (iv) Sales price and volume variances. (4 marks) b Explain ANY ONE (1) possible cause for each of the variances calculated in part (a) above. (7 marks) (c) Explain ANY ONE (1) importance of a variance report for Roti Boom Bhd. (1 mark) [Total: 25 marks]