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 $18,500 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 Direct materials, 4 metres at $3.00 per metre Direct labour, 1.5 direct labour-hour at $16 per direct labour-hour Variable overhead, 1.5 direct labour-hour at $4 per direct labour-hour Fixed overhead, 1.5 direct labour-hour at $6 per direct labour-hour Standard cost per unit $ 12 24 6 9 $ 51 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 $3.25 per metre. All of this material was used to 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 costs follow: Denominator activity level (direct labour-hours) Budgeted fixed overhead costs (from the flexible budget) Actual fixed overhead costs Actual variable overhead costs. 25,000 $150,000 $148,000 $123, 500