QUESTION The Battlesville plant of Harmon Company produces and industrial chemical. At the beginning of the year, the Battlesville plant had a following standard cost per unit: RM Direct material (10 kgs @ RM 1.60) 16.00 Direct labour (0.75 hour @ RM 18) 13.50 Fixed OH (0.75 hour @ RM 4) 3.00 Variable OH (0.75 hour @ RM 3) 2.25 Standard cost per unit 34.75 The Battlesville plant computes its overhead rates using direct labour hour. Its budgeted fixed overhead is RM240,000 while its standard production is 72,000 units. The actual result for the year are as follows: i. Units produced: 70,000 units. ii. Direct materials purchased: 744,000 kgs at RM 1.50 per kg. iii. Direct material used: 736,000 kgs. iv. Direct labour: 56,000 hours at RM 17.90 per hour. V. Fixed overhead: RM 214,000. vi. vii. Variable overhead: RM 175,400. Actual selling price per unit is RM 45. In setting the standard selling price, the Battlesville plant used the policy of 20% mark-up on the total standard cost. Required: a. Calculate standard profit per unit for the above business. b. Calculate the following variance: i. Direct material price variance ii. Direct material usage variance iii. Direct labour rate variance iv. Direct labour efficiency variance V. Variable production OH expenditure variance vi. Variable production OH efficiency variance vii. Fixed production OH expenditure variance viii. Fixed production OH volume variance ix. Sales price variance x. Sales margin volume variance (3 marks) (17 marks)