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 $18,570 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 $2.80 per metre S 11 . 20 Direct labour, 1.8 direct labour-hours at $11.0 per direct labour-hour 19.80 Variable overhead, 1.8 direct labour-hours at $2.9 per direct labour-hour 5.22 Fixed overhead, 1.8 direct labour-hours at $5 per direct labour-hour 9.00 Standard cost per unit 45 .22Denominator activity level (direct labour-hours) 41, 000 Budgeted fixed overhead costs (from the flexible budget) 205,000 Actual fixed overhead costs 203, 450 Actual variable overhead costs 125, 270