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:

For the month’s production.

The following additional information is available for March’s production:

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 direct materials price variance for March?

5.           What is the standard direct labor rate per hour?

6.           What was the direct labor rate variance for March? The direct labor efficiency variance?

7.          What was the variable overhead rate variance for March? The variable overhead efficiency variance?

8.           Prepare a standard cost card for one backpack.

Transcribed Image Text:

Standard Quantity or Hours Standard Price or Standard or Rate Cost S6 per yard Direct materials Direct labor . S? ? Variable manufacturing overhead ... $3 per direct labor-hour Total standard cost S2