Plush pet toys are produced in a largely automated factory in standard lots of 100 toys each. A standard cost system is used to control costs and to assign cost to inventory. Plush fabric Standard Price $2 per meter $10 per hour Actual data for last month follow. Direct labour Standard Quantity 15 meters per lot 2 hours per lot Production (activity level) Sales Plush fabric purchased Cost of fabric purchased Fabric used Direct labour Direct labour cost Variable overhead Fixed overhead 2400 lots 1600 lots 30000 meters $62000 34000 meters 4200 hours $39000 $12000 $24920 The entity's policy is to record materials price variances at the time materials are purchased.