QUESTION 2 The CEO of Farisha Hijab Sdn Bhd insisted on further investigation to be carried out that he also required Mr Muaz to conduct the analysis of variance for the material and labour of the product. Standard material to produce each product are as follows: Products Jelita Premium Cotton Shawl Easy Going Chiffon Shawl Manis Premium Satin Shawl Meanwile, standard labour hours for each product are as follows: Skilled labour 1 hour @ RM9 per hour Semi-skilled labour 1 hour and 30 minutes @ RM6.50 per hour However, following are the actual cost incurred for the direct materials and direct labour: Quantity 154 rolls (50 meter per roll) 68 rolls (50 meter per roll) 27 rolls (50 meter per roll) Skilled Semi-skilled i. Materials Cotton silk Chiffon silk Satin silk ii. iii. Material Cotton silk Chiffon silk Satin silk Material usage 1.3 meter @ RM7/meter 1.3 meter @ RM11/meter 1.3 meter @ RM22/meter As an accountant executive, prepare the following: a. Calculate the individual variances for the following: Jumlah (RM) 69,300 44.200 32,400 9,768 hours at total cost of RM92,796 15,540 hours at total cost of RM93,240 Direct material price and usage for each product. Direct labour rate and efficiency variances. Direct labour mix and yield variances. b. Discuss the result of the variances above in relation to the business dilemma (13 marks) (4 marks) (Total: 17 marks) Page 4 of 6