QUESTION 2 A & A Sdn Bhd manufactures an economical surfboard for children, called Foam Surfboard for domestic market. It is specifically designed for children under 40kg learning how to surf. The company applies standard costing system for cost controlling. The budgeted data for the second quarter ended 30 June 2021 are given below: Budgeted data for second quarter ended 30 June 2021: Production and sales unit 50,000 Sales revenue RM6,000,000 Direct material - Foam blank 100,000 pieces at RM5 per piece Direct labours 150,000 hours at RM14 per hour Fixed production overheads RM600,000 Variable production overheads RM6 per unit It is the policy of A & A Sdn Bhd to absorb variable production overheads based on direct labour hours while the fixed production overheads based on the number of units produced. The following is the actual data collected for the second quarter ended 30 June 2021: Production and sales unit 48,000 Sales revenue RM7,200,000 Direct material purchased and used RM506,880 for 105,600 pieces Direct labours 120,000 hours at total cost of RM1,800,000 Fixed production overheads RM660,000 Variable production overheads RM352,000 Required: Prepare a standard cost card for one unit of Foam Surfboard by clearly showing the standard profit (4 marks) b. Calculate the following variances: Direct material price and usage Hi. Direct labour rate and efficiency lii. Variable production overhead expenditure and efficiency iv. Fixed production overhead expenditure and volume Sales margin price and volume (15 marks) Construct the Profit Reconciliation Statement for the second quarter ended 30 June 2021. (4 marks) d. Explain briefly THREE (3) purposes of standard costing system. (3 marks) (Total: 26 marks) V. c