Crafty Cuts Ltd. produces and sells chairs. The following provides information relating to standard costs and inputs estimated at the start of the year. Input Direct Material - wood Direct Material - wood Direct Material - nails Direct Material - nails Direct Labour hours - assembly Direct Labour cost Total variable overhead costs Standard cost/input 5 wood planks per chair $4 per wood plank 20 nails per chair $0.20 per nail 4 hours per table $22 per hour $800,000 At the start of the year it was estimated that Crafty Cuts would produce 20,000 chairs. Actual production was 19500 chairs this year. The following provides information relating to actual costs and inputs incurred this year. Input Direct Material - wood Direct Material - wood Direct Material - nails Direct Material - nails Direct Labour hours - assembly Direct Labour cost Total variable overhead costs Actual costs/inputs 4.8 wood planks per chair $4.50 per wood plank 20 nails per chair $0.20 per nail 3.5 hours per table $24 per hour $1,000,000