actual variable overhead costs - 50390

Clarissa McWhirter, vice president of Cyprus Company, was pleased to see a small variance on the income statement after the trouble the company had been having in controlling manufacturing costs. She noted that the $9,030 overall manufacturing variance reported last period was well below the 3% timit that had been set for variances. The company produces and sells a single product. The standard cost card for the product follows: 8.80 $ 9.60 Standard Cost Card-Per Unit Direct materials, 4 metres at $2.20 per metre Direct labour, 1.2 direct labour-hours at $8.0 per direct labour-hour Variable overhead, 1.2 direct labour-hours at $2.) por direct labour hour Fixed overhead, 1.2 direct labour-hours at $5 per direct labour hour 2.76 6.00 Standard cost per unit 3 27.16 The following additional Information is available for the year just completed a. The company manufactured 17,000 units of product during the year. b. A total of 67140 metres of material was purchased during the year at a cost of $2.50 per metre. All of this material was used to manufacture the 17,000 units. There were no beginning or ending Inventories for the year c. The company worked 21100 direct labour hours during the year at a cost of $760 per hour d. Overhead cost is applied to products on the basis of standard direct labour hours. Data relating to manutacturing overhead costs follow: Denominator activity level (direct labour hours) Budgeted fixed overhead costs (froe the flexible budget) Actual fixed overhead costs 18,40 94,000 92,150