(Solved): QUESTION 3 (25 MARKS) Artisan Bags \$dn, Bhd. produces leather bags called 'Elegance'. As a manageme ...

QUESTION 3 (25 MARKS) Artisan Bags \$dn, Bhd. produces leather bags called 'Elegance'. As a management accountant in the Cost Control Department, Encik Halim is required to prepare a variance analysis of the performance of 'Elegance' for the month of June 2024. The following are the budgeted data for the month ending 30 June 2024: Budgeted production and sales of 'Elegance' is 10,000 units per month. Variable overhead is absorbed based on direct labour hour whereas fixed overhead is absorbed based on units produced. Below are the actual results for the month of June 2024: Required: a) Compute the following variances and indicate whether each is favourable (F) or adverse (A): i. Direct material price variance ii. Direct material usage variance iii. Direct labour rate variance (3 marks) (3 marks) iv. Labour labourefficiency variance (3 marks) v. Variable production overhead expenditure vi. Sales price variance (3 marks) (3 marks) b) State TWO (2) reasons for material price variance and TWO (2) reasons for labour efficiency variance. c) Describe any THREE (3) characteristics of ideal standards.