QUESTION 3 (A)Daisy Sdn. Bhd. (DSB) produces two products, which are Product A and Product B. The followings are the budgeted units to be produced by DSB for 2020: July August September October Product A (units) 8,500 8,800 9,200 11,000 Product B(units) 11,600 12,800 14,700 15,100 Total Units 20,100 21,600 23,900 26,100 It takes 4 pounds of direct materials to produce the Product A and 5 pounds of direct materials to produce the Product B. It is the company's policy to maintain an inventory of direct materials on hand at the end of each month equal to 20% of the next month's production needs for the Product A and 25% of the next month's production needs for the Product B. Direct materials inventory on hand at 30 June were 6,000 pounds for the Product A and 10,200 pounds for the Product B. The cost per pound of materials is RM6.5 Standard and RM6 Advanced. Required: Prepare direct materials budgets for each product for the third quarter of 2020. (25 marks) (B) Roti Sdn. Bhd. (RSB) manufactures one product called VitaBread. The company uses a standard cost system and sells each Vitabread for RM8. At the start of monthly production, RSB estimated 9,500 Vitabread would be produced in October 2021. RSB has established the following material and labor standards to produce one "Vitabread": Direct materials Direct labor Standard Quantity 2 pounds 0.5 hours Standard Price RM4 per pound RM12 per hour During October 2021, the following activity was recorded by the company relating to the production of "Vitabread": 1. The company produced 7,500 units during the month. 2. A total of 25,000 pounds of materials were purchased at a cost of RM90,000. 3. A total of 22,000 pounds of materials were used in production. 4. 4,400 hours of labor were incurred during the month at a total wage cost of RM52,800. Required: a) Compute the following variances for October 2021 for RSB: (i) Labor price variance (ii) Labor quantity variance (iii) Materials price variance (iv) Materials quantity variance (20 marks) b) Show TWO (2) similarities and differences respectively between standards and budgets