UMPH Manufacturing Sdn Bhd uses a standard cost system and sets predetermined overhead rate on the basis of direct labour-hours. The following data are taken from the company's budget for the current year: Denominator activity (direct labour-hours) Variable manufacturing overhead cost Fixed manufacturing overhead cost. 5.000 RM25.000 RM59.000 The standard cosi card for the company's only product is given below: Direct materials, 3 meters at RM4.40 per meter...RM13.20 Direct labour, I bour at RM12 per hour Manufacturing overhead, 140% of direct labour cost.. 12.00 16.80 Standard cost per unit RM42.00 During the year, the company produced 6,000 units of product and incurred the following costs Materials purchased, 24,000 meters at RM4,80 per meter. RMU5,200 Materials used in production (in meters) 18,500 Direct labour cost incurred, 5,800 hours at RM13 per hour 75,400 Variable manufacturing overhead cost incurred RM 29.580 Fixed manufacturing overhead costs incur.... RM 60,400 Required: Redo the standard cost card in a clearer, more usable format by detailing the variable and fixed overhead cost elements. Prepare an analysis of the variances for direct materials and direct labour for the year. 18 Marks) [CO3, PO5, C51 Prepare an analysis of the variances for variable and fixed overhead for the year. 16 Marks [CO3, PO5, C51 (d) What effect, if any, does the choice of denominator activity level have on unit standard costs? Is the volume variance a controllable variance from a spending point of view? Explain