QUESTION 4 Halina Interior decorates interiors of residences and commercial premises. The firm's management has established cost standards per 100 square feet of area to be decorated. Direct materials (RM20 per deco item) Direct labour Variable overhead Fixed overhead (based on 600,000 square feet per month) RM 2.00 3.00 0.60 1.25 Management has determined that 400 square feet can be decorated by the average worker each hour. During January, the company decorated 600,000 square feet of space and incurred the following costs: Continued... HAM 4/5 BAC 1634 MANAGEMENT ACCOUNTING I IN JUNE 2021 Direct materials (400 deco items purchased and used) Direct labour (1,450 hours) Variable overhead Fixed overhead RM 9,500 13.775 3,480 7.720 Required: a) Compute direct material price and efficiency variances. (8 marks) b) Compute direct labour price and efficiency variances. (8 marks) c) Compute total overhead variance. (5 marks) d) Explain the similarities and differences between standards and budgets. (2 marks) e) Explain possible circumstances that may cause the purchasing department to be responsible for both an unfavourable materials price variance and an unfavourable materials quantity variance (2 marks)