PROBLEM 9A-10 Comprehensive Standard Cost Variances LO9-4, LO9-5, LO9-6, LO9-7 "Wonderful! Not only did our salespeople do a good job in meeting the sales budget this year, but our pro- duction people did a good job in controlling costs as well," said Kim Clark, president of Martell Company. "Our $18.300 overall manufacturing cost variance is only l .2% of the $ 1,536,000 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 Cost Standard Quantity Standard Price or Rate Inputs or Hours 2 feet 1.4 hours 1.4 hours 1.4 hours $8.45 per foot $16 per hour $2.50 per hour $6 per hour $16.90 22.40 3.50 8.40 $51.20 Direct labor Variable overhead Total standard cost per unit. 41 0008 5081 3101 2 8 oten luis sret el dd vaac rh DBAA tree th es E TTA th in Th 0 m