QUESTION 2 (25 MARKS) Armada Company manufactures a single product which is produced through a repetative production process. The company applies standard costing technique and variance analysis to control cost. The following data was available for month of December 2021. Budgeted and standard cost data for the month of December 2021: i. Budgeted sales and production for the month was 10,000 units. ii. Standard cost for each unit of product: Direct material - A 10 kg at RM1.00 per kg Direct material - B 5 kg at RM5.00 per kg Direct wages 5 hours at RM8.00 per hour iii. Budgeted fixed overheads are RM300,000. iv. Budgeted sales price has been calculated to give a contribution margin of 50% of sales price Actual data for month ended 31 December 2021: i. Actual production and sales units was 9,500 units and sold at a price of 10% higher than that budgeted. ii. Direct materials consumed: Direct material - A 96,000 kg at RM1.20 per kg Direct material - B 48,000 kg at RM4.70 per kg iii. Direct wages incurred 46,000 hours at RM3.20 per hour. iv. Fixed production overhead incurred RM290,000. Required: a. Determine the standard variable product cost per unit and based on the product cost calculate the standard selling price of the product. (4 marks) b. Calculate the following variances for December 2021: i. Direct material price and usage variances ii. Direct wages rate and efficiency variances iii. Fixed overhead expenditure variance iv. Sales margin price and volume variances (16 marks) c. Prepare the operating income statement for the month ended 31 December 2021 to determine the actual profit of the product