Question 35 The Des Moines Leather Company makes a variety of leather goods. It uses standard costs and a flexible budget to aid planning and control. Budgeted variable overhead at a 45,000 direct labour hour level is RM81,000. During April, the company had a favourable variable overhead efficiency variance of RM2,970. Material purchases were RM241,900. Actual direct labour costs incurred were RM422,100. The direct labour quantity variance was RM15,300 unfavourable. The actual average wage rate was RM0.60 lower than the standard average wage rate. The company uses a variable overhead rate of 20% of standard direct labour cost for flexible budgeting purposes. Actual variable overhead for the month was RM92,250. Required: Compute the following: (a) Standard direct labour cost per hour (b) Actual direct labour hours worked (c) Total direct labour price variance (d) Total flexible budget for direct labour costs. Total direct labour variance (e) (f) Variable overhead expenditure variance (g) Variable overhead efficiency variance