Question 1 The following are the budget and actual figures for a period: RM RM Budget: Sales 260,000 (20,000 units (@ RM13.00) Production 20,000 units Production costs: Direct materials 61,200 (12,000kg @ RM5.10) Direct labour 69,700 (8,200 hours @ RM8.50) Fixed overhead 48.000 (20,000 units @ RM2.40) 178.900 Gross profit 81,100 Actual: Sales 257,800 (19,600 units) Production 20,400 units Production costs: Direct materials 62,496 (12,440 kg) Direct labour 70,227 (8,262 hours) Fixed overhead 48,160 180,883 Increase in inventory (at standard) (7.156) 173,727 Gross profit 84,073 Required: (a) Calculate the following variances: (i) Sales volume profit (ii) Selling price (iii) Direct material price (iv) Direct material usage (v) Direct labour efficiency (vi) Direct labour rate (vii) Fixed production overhead volume (16 marks) (b) Suggest a possible reason for direct material price, direct material usage, direct labour efficiency and direct labour rate variances that calculated in (a). (4 marks) 120 Marks]