Q2. (a) Bronze Enterprise manufactures a single product for kitchen equipment, a wooden cutting board with a standard cost of RM85.50. The cost made up as follows: Direct material (1.5 metres at RM32 per metre) Direct labor (5 hours at RM4.50 per hour) Variable overhead (5 hours at RM2 per hour) Fixed overhead Standard cost RM 48.00 22.50 10.00 5.00 85.50 The standard selling price of cutting board is RM109.00. The monthly budget projects production and sales of 1,000 units. Variable and fixed overhead at Bronze Enterprise is applied based on direct labor hours. Actual figures for the month of August 2019 are as follows: Sales 1,200 units at RM112 per unit Production 1,400 units Direct material purchased 2,200 metres and used 1,800 metres at RM30 per metre. 6,800 direct labor hours at RM5 per hour Variable overhead and fixed overhead at RM13,000 and RM6,000 respectively. Required: Compute materials, labor, variable and fixed variances. (16 marks) (ii) Refer to answer in (i), explain ONE (1) possible reason for each of the material and labor variances. (8 marks)