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 $12,270 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:

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 $12,270 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 produot follows: Standard Cost Card-Per Unit Direct materials, 4 metres at $2.90 per metre Direct labour, 1.9 direct labour-hours at $11.5 per direct labour-hour Variable overhead, 1.9 direct labour-hours at $3.0 per direct labour-hour Fixed overhead, 1.9 direct labour-hours at $5 per direct labour-hour $11.60 21.85 5.70 9.50 Standard cost per unit $48.65 The following additional information is available for the year just completed a. The company manufactured 24,000 units of product during the year. b. A total of 95,200 metres of material was purchased during the year at a cost of $3.00 per metre. All of this material was used to manufacture the 24,000 units. There were no beginning or ending inventories for the year. c. The company worked 47,000 direct labour-hours during the year at a cost of $11.20 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) Budgeted fixed overhead costs (from the flexible budget) Actual fixed overhead costs Actual variable overhead costs 45,400 $227,000 $ 225,500 $142,370 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 $12,270 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 produot follows: Standard Cost Card-Per Unit Direct materials, 4 metres at $2.90 per metre Direct labour, 1.9 direct labour-hours at $11.5 per direct labour-hour Variable overhead, 1.9 direct labour-hours at $3.0 per direct labour-hour Fixed overhead, 1.9 direct labour-hours at $5 per direct labour-hour $11.60 21.85 5.70 9.50 Standard cost per unit $48.65 The following additional information is available for the year just completed a. The company manufactured 24,000 units of product during the year. b. A total of 95,200 metres of material was purchased during the year at a cost of $3.00 per metre. All of this material was used to manufacture the 24,000 units. There were no beginning or ending inventories for the year. c. The company worked 47,000 direct labour-hours during the year at a cost of $11.20 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) Budgeted fixed overhead costs (from the flexible budget) Actual fixed overhead costs Actual variable overhead costs 45,400 $227,000 $ 225,500 $142,370