$16.00 15.00 Direct materials: 4 metres at $4.00 per metre Direct labour: 1.5 hours at $10.00 per hour Variable overhead: 1.5 hours at $3.00 per hour Fixed overhead: 1.5 hours at $7.00 per hour Standard cost per unit 4.50 10.50 $46.00 ompany manufactured and sold 18,000 units of product during the last year. A total of metres of material was purchased during the year at the cost of $4.20 per metre. All of material was used to manufacture all the outputs. The company records showed no sing or ending inventories for the year. he payroll records, it indicated payments of actual labour wages of $9.75 per hour for a 129,250 labour hours worked. ead costs were applied to products on the basis of direct labour hours. The amount of variable overhead costs incurred were $90,000. ked overheads, the budgeted activity level (direct labour hours) was 22.500 hours. Ied fixed overhead costs as shown on the flexible budget were S157.500, while actual verhead costs incurred were $156,000. 23 Thing Cast vanances