Check my 1 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 $17016 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: 40 point 00:48:11 10.40 Standard Cost Card-Per Unit Direct materials, 4 metres at $2.60 per metre Direct labour, 1.6 direct labour-hours at $10.0 per direct labour-hour Variable overhead, 1.6 direct labour-hours at $2.7 per direct labour-hour Fixed overhead, 1.6 direct labour-hours at ss per direct labour-hour 16.00 6.32 eBook 8.00 Standard cost per unit 38.72 Print References The following additional information is available for the year just completed: a. The company manufactured 21,000 units of product during the year. b. A total of 83,020 metres of material was purchased during the year at a cost of $2.80 per metre. All of this material was used to manufacture the 21,000 units. There were no beginning or ending inventories for the year c. The company worked 34.700 direct labour-hours during the year at a cost of $9.80 per hour d. Overhead cost is applied to products on the basis of standard direct labour-hours. Data relating to manufacturing overhead costs follow: Denominator activity level (direct labour-hours) Badgeted fixed overhead coata from the flexible budget) Aetsel fixed ovechend cost Actual variable overhead costs 32,800 $ 164,000 $ 162,350 $ 95,270 Check 1 Required: 1. Compute the direct materials price and quantity Varlandes for the year indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (ie, zero variance) 40 points 8 00:47:57 Materials prie variance Materials quantity variance Book Print References 2. Compute the direct tabour rate and efficiency variances for the year. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect ... zero variance):) Labour rate variance Labour officiency variance 3. For manufacturing overhead. compute the following: a. The variable overhead spending and efficiency variances for the year. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effecffi.e., zero variance).) 40 points 8 00:47:43 Variable overhead spending variance Variable overhead efficiency variance eBook Print References b. The fixed overhead budget and volume variances for the year. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (.e., zero variance).) Faced overhead budget variance Fixed overhead volume variance Chech 1 Fixed Overhead budget variance Fwed overhead volume variance 40 point 00:47:20 Book 4. Compute the total variance. (Indicate the effect of each variance by selecting "F" for favorable. "U" for unfavorable, and "None" for no effect (ie, zero variance). Input all amounts as positive values.) References Total varianon