Paragraph QUESTION ONE: Comprehensive Standard Cost Variances 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 $12250 overall manufacturing vanancereported 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 $3.50 per metre Direct labour, 1.5 direct labour-hours at $12 per direct labour-hour Variable overhead, 1.5 direct labour-hours at $2 per direct labour-hour Fixed overhead, 1.5 direct-labour hours at $6 per direct labour-hour9 Standard cost per unit $14 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 75 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 $11.80 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 fxed overhead costs (from the flexible budget) $150,000 Actual flixed overhead costs 25,000 $148,000 Actual variable overhead costs $68.250 Required: up 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 $3.75 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 $11.80 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) 25,000 $150,000 $148,000 68,250 Actual fixed overhead costs Actual variable overhead costs Required 1. Compute the direct materials price and quantity variances for the year. a. The variable overhead spending and efficiency variances for the the variances you have computed, and compare the net amount 2. Compute the direct labour rate and efficiency variances for the year 3. For manufacturing overhead, compute the following: year b. The fixed overhead budget and volume variances for the year Total hp