Question2 a) Borealis Electronics has the following standards and flexible budget data: Standard variable overhead rate Standard quantity of direct labour Budgeted fixed overhead (based on 25,000 units) Budgeted output RM6.00 per direct labour hour 2 hours per unit of output RM100,000 25,000 units Standard cost per unit: Variable overhead Fixed overhead RM12.00 RM4.00 RM16.00 Actual results for October are given below: Actual output Actual variable overhead Actual fixed overhead Actual direct labour 30,000 units RM360,000 RM106,000 56,000 DLH Required: Calculate the following variances and indicate whether each is favourable or unfavourable: i. Variable overhead spending, efficiency and total variance. (6 marks) i. Fixed overhead budget, volume and total variance. (6 marks) b) One of the stated advantages of standard costing is "more stable product costs