QUESTION 2 Excellent Sdn Bhd manufactures a single product called Magenta. The budgeted costs of the company for the first half year of 2021 based on budgeted productions and sales of 15,000 units of Magenta are as follow: RM Direct material 135,000 Direct labour 67,500 Manufacturing overhead 121,500 The standard price for the direct material is RM4.50 per litre whereas the standard rate for the direct labour is RM1.50 per hour. The overhead costs are charged to production based on direct labour hours. Standard fixed overhead absorption rate is RM5.40 per unit. The standard selling price is RM33 per unit. The actual data for the period is as follows: RM Sales 507,500 Less: Variable costs Direct materials (128,000) Direct labour (79,200) Variable overhead (55,000) Contribution margin 245,300 Less: Fixed costs Fixed overhead (90,000) Net profit 155,300 The total actual direct material quantity is 32,000 litres whereas the total actual direct labour hours is 44,000 hours. The actual sales volume is 14,500 units. Required: a. Prepare a standard cost card for one unit of Magenta. (4 marks) b. Calculate the following variances for the first half year of 2021: i. Direct material price and usage ii. Direct labour rate and efficiency iii. Variable production overhead expenditure and efficiency iv. Fixed production overhead expenditure and volume v. Sales margin price and volume (14 marks)