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 $17,385 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 Direct materials, 4 metres at $2.50 per metre Direct labour, 1.5 direct labour-hours at S9.5 per direct labour-hour Variable overhead, 1.5 direct labour-hours at $2.6 per direct labour-hour 3.90 Fixed overhead, 1.5 direct labour-hours at $5 per direct labour-hour $10.00 14.25 7.50 $ 35 65 Standard cost per unit The following additional information is available for the year just compl a. The company manufactured 20,000 units of product during the year b. A total of 79,050 metres of material was purchased during the year at a cost of $2.70 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 31,000 direct labour-hours during the year at a cost of $9 40 per hour Overhead cost is applied to products on the basis of standard direct labour-hours. Data relating to manufacturing overhead costs follow Denominator activity level (dirct labour-hours) Budgeted fioxed overhead costs (from the flexible budget Actual fixed overhead costs Actual variable overhead costs 29,000 $ 145,000 5 143.300 S 82.250