Syarikat D (SD) manufactures various type of wooden bed. SD has two departments, Cutting and Finishing Department. At Cutting Department, the woods are cut and coated with several layers of lacquer before transferred to Finishing Department. Each finished bed requires seven board feet of wood. Typically, one board foot is wasted during the production process. The price per board foot of wood is RM24. For direct labor, the standard hour needed in this department is six hours and the rate per hour is RM20. At Finishing Department, the parts of cutting wood are attached together and painted with several type of paint. The set of materials used to attach the bed cost RM30 per set. Each bed requires one set of attachment material. Direct labor for Finishing Department needed is three hours at RM15 per hour. During March 2021, the followings were incurred for production: 1. The production of wooden bed is 1,000 units, where 800 units were sold on account for RM800 each. 2. SD purchased 12,000 board feet of wood at a price of RM25 per board foot. However, only 9,000 board feet were used into production. 3. The material used to attach the bed are purchased at RM37,800, and it is enough to join 1,200 units of bed. 4. The Cutting Department used 5,700 direct labor hours, with total cost of RM108,300, whereas the Finishing Department used 3,140 direct labor hour with total cost of RM50,240. 5. There were no beginning and ending work in process inventories in both departments. 6. There was no beginning finished goods inventory.

) Prepare for each department a standard cost sheet for: (i) Direct material (ii) Direct labor (5 Marks) (b) Calculate the followings: (i) Total direct material variance for Cutting Department (ii) Total direct material variance for Finishing Department (iii) Total direct labor variance for Cutting Department (iv) Total direct labor variances for Finishing Department (13.5 Marks) (c) Explain how variance analysis can help in performance measurement in SD. (1.5 Marks)