QUESTION 4 Wonder Girl Sdn Bhd manufactures one product, and the product is sold as soon as it is produced. The company operates a standard costing system and analysis of variances is made every month. The following standards were set for the single product: 111 RM Direct materials RM24 per kg x 0.2 kgs 4.80 Direct labour RM12 per hour x 0.8 hours 9.60 Variable production overhead RM10 per hour x 0.8 hours 8.00 22.40 The following actual results were recorded for the month just ended: Direct materials 690 kgs were purchased and used for RM15,456. Direct labour Variable production overhead RM29,820 was paid for 2,100 hours worked. RM24,360 was incurred. 3,100 units of products were manufactured and sold for the month. Required: Calculate the following variances: a. Direct material price, usage and cost variance. (7 marks) b. Direct labour rate, efficiency and cost variance. (7 marks) C. Variable overhead expenditure, efficiency and cost variance. (7 marks) Page 6 of 11 SEGI College Kota Damansara PROGRAMME: DIPLOMA IN ACCOUNTANCY/ DIPLOMA IN BUSINESS ADMINISTRATION d. Suggest possible TWO (2) reasons for each of the material price and usage and labour rate and efficiency variances. (4 marks) (Total: 25 marks)