Problem 10A-10 Comprehensive Standard Cost Variances [L010-1, Lo10-2, L010-3, Lo10-4) Wonderfull Not only did our salespeople do a good job in meeting the sales budgef this year, but our production people did a good job in controlling costs as well." said Kim Clark, president of Martell Company. "Our $18.300 overall manufacturing cost varlance is only 12% of the $1,525,000 standard cost of products made during the year That's well within the 3% parameter set by management for acceptable variances. It looks like everyone will be in line for a bonus this year The company produces and sells a single product. The standard cost card for the product follows Standard Standard Price Standard Cost Quantity or Hours 2 feet $ B.45 pen foot 1,4 hours 16 per hour 1.4 hours $ 2.50 per hour 1.4 hours $6 per hour 16,90 22.40 3,50 8.40 s 51.20 Direct labor Total standard cost per unit The following additional information is available for the year just completed a. The company manufactured 30,000 units of product during the year b. A total of 64.000 feet of material was purchased during the year at a cost of $8.55 per foot. All of this material was used to manufacture the 30,000 units produced. There were no beginning or ending inventories for the year c. The company worked 43,500 direct labor-hours during the year at a direct labor cost of $15.80 per hour d. Overhead is applied to products on the basis of standard direct labor-hours. Data relating to manufacturing overhead costs follow