Question 1 Luxchem Sdn. Bhd. manufactures and sells torque Wrenches for international and domestics market. Torque Wrench is used for aircraft maintenance and its purpose to provide an accurate torqueing during installing an aircraft component's mounting bolt and screw. The budgeted production and sales for the year 2020 is 20,000 units and standard selling price per unit expected to be RM120. The variable and fixed overhead cost is absorbed based on direct labour hours. The standard cost of torque wrench is shown below: Direct material 3 kg x RM20 Direct labour 4.8 hour x RM10 Variable overhead Fixed overhead RM60 RM48 RM19.20 RM33.60 The actual production and sales units of the torque Wrench for the year 2020 were 18,750 units. Luxchem Sdn. Bhd. sets the actual selling price at RM15 higher than the standard selling price due to unexpected increase in the actual direct material and direct labour costs. The actual costs were RM25 per kg for direct material and RM12 per hour for direct labour. The following are additional actual cost information for the year 2020: Direct material purchased (kgs) Direct labour hours Variable overhead Fixed overhead 65,000 95,000 RM365,000 RM680,000 Required: (a) Direct material price. (3 marks) (b) Direct material usage. (3 marks) (c) Direct labour rate. (3 marks) (d) Direct labour efficiency. (3 marks) (e) Variable overhead efficiency. (3 marks) (f) Variable overhead expenditure. (3 marks) (9) Fixed overhead expenditure. (3 marks) (h) Briefly explain TWO (2) possible causes of the direct material price variance that you have calculated above. (4 marks)