QUESTION 2 (25 MARKS) Lion King Bhd, a manufacturing firm, operates a standard marginal costing system. It makes a single product, Super King, using a single raw material. Standard costs per unit of Super King are as follows: Direct material, 100 kg at RM5 per kg Direct labor, 10 hours at RM8 per hour Variable production overhead, 10 hours at RM2 per hour The standard selling price of the product is RM900 each. The company budgeted to produce and sell 1,000 units a month. During the month of June 2021, total 1,200 units of Lion King were produced and sold. Relevant details of this production are as follow: Direct material 90,000 kg costing RM720,000 were bought and used. Direct labor 8,200 hours were worked during the month and total wages were RM63,000. Variable production The actual cost for the month was RM25,000. overhead a. c Required: Define the meaning of variance analysis. (2 MARKS) b. Prepare a standard profit statement based on budgeted output units. (5 MARKS) Calculate the following variances showing the result whether is favorable (F) or adverse (A): Direct material price (3 MARKS) Direct material usage (3 MARKS) iii. Direct labor rate (3 MARKS) iv. Direct labor efficiency (3 MARKS) Variable production overhead expenditure (3 MARKS) Variable production overhead efficiency (3 MARKS) i. ii. V. vi