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Rising manufactures a product called Beerry. The company applies standard costing system for cost controlling. The budgeted data and actual data for the quarter ended

Rising manufactures a product called Beerry. The company applies standard costing system for cost controlling. The budgeted data and actual data for the quarter ended 30 June 2019 are given below.

Budgeted data for the quarter ended 30 June 2019

Production and sales units

40,000

Direct material A

Purchased and used: 200,000 kg at a cost of RM4.00 per kg

Direct material B

Purchased and used: 400,000 kg at a cost of RM5.00 per kg

Direct labours

- Paid at RM10 per hour

- Estimated hours worked : 200,000 hours

Fixed production overhead costs

RM800,000 and absorbed based on units of production

Sales revenue

RM7,000,000

Actual data for the quarter ended 30 June 2019

Selling price

10% higher than standard selling price

Production and sales units

38,000

Direct material A

Purchased and used: 192,000 kg at a cost of RM4.50 per kg

Direct material B

Purchased and used: 410,000 kg at a cost of RM4.80 per kg

Direct labours

- Paid at RM11 per hour

- Actual hours worked : 205,000 hours

Fixed production overhead costs

RM786,000 and absorbed based on units of production

Required:

Compute the following variances:

i. Direct material price variance (Direct material A and direct material B)

ii. Direct material usage variance (Direct material A and direct material B)

iii. Direct labour rate variance

iv. Direct labour efficiency variance

v. Fixed overhead expenditure variance

vi. Fixed overhead volume variance

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