QUESTION 1

ABC Berhad operates a standard costing system and analysis of variances is made every month. The standard cost card is as follows for a unit of product:

Direct materials0.5kg at RM 4/kg

Direct labour2 hours at RM 2/hour

Variable overheads2 hours at RM 0.30/hour

Fixed overhead2 hours at RM 3.70/hour

Standard selling priceRM20.00

Budgeted output for the month of January 2021 was 5,100 units. Actual results were as follows:

Production and sales units4,850 units.

The revenue wasRM95,600

Materials purchased amounted to 2,300 kg at a total cost of RM9,800

Material used was 2,200 kg.

Direct Labour 8,500 hours at a cost of RM16,800

Variable overheads amounted to RM2,600

Fixed overheads amounted to RM42,300

Calculate ALL variances