2 Highland Company produces a lightweight backpack that is popular with college students. Standard variable costs relating to a single backpack are given below: Direct materials ints Direct labor Variable manufacturing overhead Total standard cost per unit eBook Print References Standard Quantity or Hours Standard Price or Rate $4.00 per yard Standard Cost $7 7 7 7 7 57 $2 per direct labor-hour Overhead is applied to production on the basis of direct labor-hours. During March, 420 backpacks were manufactured and sold. Selected information relating to the month's production is given below: Total standard cost allowed* Materials Direct Variable Manufacturing Used Labor Overhead $6,720 $4,369 $1,092 $5,355 . 1,407 $ 430 U Actual costs incurred Materials price variance Materials quantity variance Labor rate variance Labor efficiency variance Variable overbead rate variance Variable overhead efficiency variance "For the month's production The following additional information is available for March's production: Actual direct labor-hours Difference between standard and actual cost per backpack produced during March 630 3.0.15 F Required: Hint: It may be helpful to complete a general model diagram for direct materials, direct labor, and variable manufacturing overhead before attempting to answer any of the requirements. Cints 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? book Pont 5. What is the standard direct labor rate per hour? References 6. What was the labor rate variance for March? The 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 Higniano Company produces a lightweight backpack that is popular with college students. Standard variable costs relating to a single backpack are given below. Direct materials Direct labor Variable manufacturing overhead Total standard cost per unit Standard Quantity or Hours Standard Price or Rate $ 4.00 per yard Standard Cost $7 2 $2 per direct labor-hour Overhead is applied to production on the basis of direct labor-hours. During March, 420 backpacks were manufactured and sold. Selected information relating to the month's production is given below: Total standard cost allowed Materials quantity variance Labor efficiency variance Materials Uned $6,720 $ 5,355 Direct Labor $ 4,360 7 $420 U Actual costs incurred Materials price variance Labor rate variance Variable overhead rate variance. Variable overhead efficiency variance "For the month's production. The following additional information is available for March's production: Actual direct labor-hours Difference between standard and actual cost per backpack produced during March 630 $ 0.15 F Variable Manufacturing Overhead $ 1,092 $1,407