Prepare a revised report for the machining department and recalculate budget variances. (12 marks)

Bersatu Sdn. Bhd. is a manufacturer of small industrial tools with annual sales of approximately RM3.5 million. The following is the performance report for machining department in May 2020: Budgeted Actual Variance 3000 3185 185 F Sales and production Volumes(units) RM'000 RM1000 RM'000 24,000 24.843 843 A 27,750 29.302 1552 A Variable manufacturing costs: Direct material Direct labour Variable overhead Total variable cost Fixed manufacturing costs: Indirect labour 33,300 35,035 1735 A 85,050 89.180 4,130A 3,300 3,334 34 A Depreciation 1,500 1.500 Taxes 300 300 Insurance 240 240 Other 930 1,027 97 A Total fixed costs 6,270 6,401 131 A Corporate costs: Research and development Selling and administrative 2.400 3.728 1,328 A 3,600 4,075 475 A Total corporate costs 6,000 7,803 1,803 A Total costs 97,320 103,384 6,064 A