"Wonderful! Not only did our salespeople do a good job in meeting the sales budget 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 variance is only 1,2% of the $1,525,000 standard cost of products made during the year. That's well within the 3% parameter set by manage e tfor 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: Standand Price or Rate $8.45 per foot Standard Standard Quantity or Hours Cost Inputs Direct materials Direct labor Variable overhead Fixed overhead 2 feet 1.4 hours 16 per hour 1.4 hours 2.50 per hour $ 16.9e 22.40 3.50 1.4 hours 6 per hour8.48 $51.20 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 Prev 1 of 1 Next> 11:3 rch