The Sterling Company uses a standard cost system in which manufacturing overhead costs are applied to the units of the companys single product on the basis of direct labor-hours (DLHs). The standard cost card for the product follows: Standard Cost Card-per unit of product: Direct materials, 4 yards at $3.50 per yard $14 Direct labor, 1.5 DLHs at $8 per DLH 12 Variable overhead, 1.5 DLHs at $2 per DLH 3 The following data pertain to last years activities: - The company manufactured 18,000 units of product during the year. A total of 70,200 yards of material was purchased during the year at a cost of $3.75 per yard. All of this material was used to manufacture the 18,000 units. - The company worked 29,250 direct labor hours during the year at a cost of $7.80 per hour. - Actual variable manufacturing overhead costs were $61,425.