Highland Company produces a lightweight backpack that is popular with college students. Standard variable costs relating to a single backpack are given below:

Overhead is applied to production on the basis of direct labor-hours. During March, 1,000 backpacks were manufactured and sold. Selected information relating to the month's production is given below:

The following additional information is available for March's production:
Actual direct labor-hours ............................................................................ 1,500
Difference between standard and actual cost per backpack produced during March .... $0.15 F
Required:
1. What is the standard cost of a single backpack?
2. What was the actual cost per backpack produced during March?
3. How many yards of material are required at standard per backpack?
4. What was the materials price variance for March if there were no beginning or ending inventories of materials?
5. What is the standard direct labor rate per hour?
6. What were the labor rate variance for March and the labor efficiency variance?
7. What were the variable overhead rate variance for March and the variable overhead efficiency variance?
8. Prepare a standard cost card for one backpack.

Transcribed Image Text:

Standard Quantity or Hours Standard Price or Rate $6 per yarc Standarc Cost DIrect labor Varlable manufacturing overhead... $3 per direct labor-hour Materials Used Direct Variable Manufacturing Labor Overhead $4,200 $3,600 Total standard cost $16,800 $10,500 Varlable overhead efficlency varlance... For the month's production.