EXERCISE 11A-5 Using Fixed Overhead Variances ILO33-4 The standard cost card for the single product manufactured by Cutter, Inc., is given below: Standard Cost Card-per Unit Direct materials, 3 yards at $6.00 per yard Direct labor, 4 hours at $15.50 per hour Variable overhead, 4 hours at $1.50 per hour .. Fixed overhead, 4 hours at $5.00 per hour Total standard cost per unit $ 18 62 6 20 $106 Manufacturing overhead is applied to production on the basis of standard direct labor-hours. Dur- ing the year, the company worked 37,000 hours and manufactured 9.500 units of product. Selected data relating to the company's fixed manufacturing overhead cost for the year are shown below: Actual Fixed Overhead Budgeted Fixed Overhead Fixed Overhead Applied to Work in Process $198,700 hours xS per hour Budget variance, $-2- l volume variance, $10,000 U