Clarissa McWhirter, vice$-$president of Cyprus Company, was pleased to see a small varlance on the income statement after the the company had been having in controlling manufacturing costs. She noted that the $$18,500$ overall manufacturing varlance 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:

The following additional information is available for the year just completed:

a$.$ The company manufactured $20,000$ units of product during the year.

b$.$ A total of $78,000$ metres of material was purchased during the year at a cost of $$3\mathrm{.}25$ per metre. All of this material was usec manufacture the $20,000$ units. There were no beginning or ending inventories for the year.

c$.$ The company worked $32,500$ direct labour$-$hours during the year at a cost of $$15$ per hour.

d$.$ Overhead cost is applied to products on the basis of standard direct labour$-$hours. Data relating to manufacturing overhead follow:

$\backslash$table$[[$Denominator activity level $($direct labour$-$hours$),],[$Budgeted fixed overhead costs $($from the flexible budget$),$$$150,000$