Question 2 (Total: 15 marks) Corona Sdn Bhd operates a standard absorption cost accounting system and overheads are absorbed on the basis of labour hours. There were no stocks at the beginning of June and stocks are valued at standard cost as provided below: RM Direct material A 5kg @ RM1.60 8.00 Direct material B 10kg @ RM1.10 11.00 Direct labour 2 hours @ RM10 per hour 20.00 Variable overhead @ RM5 per hour 10.00 Fixed overhead @ RM20 per hour 40.00 89.00 Selling price 110.00 Standard profit 21.00 Corona Sdn Bhd plan to produce 3,200 units of C19, its single product, in the month of June. The budgeted costs based on the standard cost and the actual results for the month of June are as follows: Budgeted Actual RM RM Direct material A 25,600 21,870 12,150kg @ RM1.80 Direct material B 35,200 28,215 29,700kg @ RM0.95 Direct labour 64,000 52,785 6,210 hours @ RM8.50 Variable overhead 32,000 34, 155 Fixed overhead 128,000 111,780 Total production 284,800 248,805 @ 2,700 units Closing stock 17,800 200 units @ RM89.00 Cost of sales 284,800 231,005 Sales 352,000 250,000 @ 2,500 units Profit 67,200 18,995Sunway University Business School ACC2044/August 2021 Examination Required: Reconcile the budgeted profit with the actual profit for the month of November 2020, showing all the necessary variances as required. All answers are to be rounded to the nearest RM. RM A or F Budgeted profit 67,200 Sales volume profit variance [A] [B] Sales margin price variance [C] [D] Material mix variance: A [E] [F] B [G] Material yield variance: A [1] B [K] Material price variance: A [M] B [O] Labour efficiency variance [Q] Wage rate variance [S] Variable overhead efficiency variance [U] Variable overhead expenditure variance [W] Fixed overhead efficiency variance [Y] [Z] Fixed overhead capacity overhead [AA] [AB] Fixed overhead expenditure variance [AC] [AD] Actual profit 18,995 (15 marks)