The following standard costs were developed for one of the products of ELJAY Sdn Bhd (ESB): STANDARD COST PER UNIT Direct materials Direct labor Variable overhead Fixed overhead Total standard cost per unit 3 feet @ RM4.00 per foot 5 hours @ RM8.00 per hour 5 hours @ RM4.00 per hour 5 hours @ RM6.00 per hour RM 12.00 40.00 20.00 30.00 102.00 The following information is available regarding the company's operations for the period: Units produced Materials purchased Materials used Direct labor Overhead incurred: Variable Fixed 40,000 240,000 feet at RM4.40 per foot 150,000 feet 220,000 hours at RM8.30 per hour RM770,000 RM900,000 Budgeted fixed overhead for the period is RM960,000, and the standard fixed overhead rate is based on the expected capacity of 160,000 direct labor hours. REQUIRED: (a) Compute the following variances. Indicate whether it is Favorable (F) or Unfavorable (UF) variance. material price variance material usage variance (iii) labor rate variance (iv) labor efficiency variance (v) variable overhead spending variance variable overhead efficiency variance vii) fixed overhead spending variance (viii) fixed overhead volume variance (vi) (16 Marks) (b) Refer to (a) (ii), explain TWO (2) possible reasons why the variance occurred. (4 Marks)