The company produces product A. The company uses marginal costing system. The standard cost card for product is as follows:

Direct materials USD 20 per unit

Direct labor (6 hours at USD 7.5/hour) USD 45 per unit

Variable production overhead USD 27 per unit

The budgeted and actual activity levels for the last quarter were as follows:

Budgeted Actual Sales (units) 20 000 19 000 Production 20 000 21 000 The actual costs were as follows: Direct material USD 417 900 Direct labour USD 949 620 Variable production overhead USD 565 740