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 $41,410 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 CardPer Unit Direct materials, 4 metres at $3.90 per metre $ 15.60 Direct labour, 1.7 direct labour-hours at $9.0 per direct labour-hour 15.30 Variable overhead, 1.7 direct labour-hours at $2.9 per direct labour-hour 4.93 Fixed overhead, 1.7 direct labour-hours at $5 per direct labour-hour 8.50 Standard cost per unit $ 44.33 The following additional information is available for the year just completed: a. The company manufactured 34,000 units of product during the year. b. A total of 134,950 metres of material was purchased during the year at a cost of $4.00 per metre. All of this material was used to manufacture the 34,000 units. There were no beginning or ending inventories for the year. c. The company worked 60,200 direct labour-hours during the year at a cost of $8.90 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) 59,600 Budgeted fixed overhead costs (from the flexible budget) $ 298,000 Actual fixed overhead costs $ 297,000 Actual variable overhead costs $ 176,050