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 Direct labour, 1.8 direct labour-hours at $11.0 per direct labour-hour Variable overhead, 1.8 direct labour-hours at $2.9 per direct labour-hour Fixed overhead, 1.8 direct labour-hours at $5 per direct labour-hour $11.20 19.80 5.22 9.00 Standard cont per unit $45.22 The following additional information is available for the year just completed: a. The company manufactured 23,000 units of product during the year. b. A total of 91,200 metres of material was purchased during the year at a cost of $2.90 per metre. All of this material was used to manufacture the 23,000 units. There were no beginning or ending inventories for the year, c. The company worked 42,700 direct labour-hours during the year at a cost of $10.90 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) Budgeted fixed overhead costs from the flexible budget) hatual fixed overhead costa Actual variable overhead coats 41,000 $ 205,000 $ 203,450 125,270 Darrerer 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 Direct labour, 1.8 direct labour-hours at $11.0 per direct labour-hour Variable overhead, 1.8 direct labour-hours at $2.9 per direct labour-hour Fixed overhead, 1.8 direct labour-hours at $5 per direct labour-hour $11.20 19.80 5.22 9.00 Standard cont per unit $45.22 The following additional information is available for the year just completed: a. The company manufactured 23,000 units of product during the year. b. A total of 91,200 metres of material was purchased during the year at a cost of $2.90 per metre. All of this material was used to manufacture the 23,000 units. There were no beginning or ending inventories for the year, c. The company worked 42,700 direct labour-hours during the year at a cost of $10.90 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) Budgeted fixed overhead costs from the flexible budget) hatual fixed overhead costa Actual variable overhead coats 41,000 $ 205,000 $ 203,450 125,270 Darrerer