Add part 5: Redo part 1 assuming the company purchased 80,000 metres at $3.75 and used 78,000 metres to manufacture the 20,000 units.

PROBLEM 10-20 Comprehensive Standard Cost Variances ILO2, LO3, LO4, LOS, LO61 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 manu- facturing costs. She noted that the $12,250 overall manufacturing variance reported last period was well below the 3% limit that had been set for variances. The company produces and sells a single product. The standard cost card for the product follows: Standard Cost Card-Per Unit $14 18 Direct abour,15 direct labour-hours at $12 per direct labour-hour