Highland Company produces a lightweight backpack that is popular with college students. Standard variable costs relating to a single backpack are given below: Standard Quantity or Hours Standard Price or Rate $6.00 per yard Standard Cost $ ? Direct materials Direct labor $ per direct 2 labor-hour Variable manufacturing overhead Total standard cost per unit Overhead is applied to production on the basis of direct labor-hours. During March, 400 backpacks were manufactured and sold. Selected information relating to the month's production is given below: Materials Used $ 9,120 $ 5,520 Direct Labor $5,040 Variable Manufacturing Overhead $ 960 $ 2,620 $ 1,920 V Total standard cost allowed Actual costs incurred Materials price variance Materials quantity variance Labor rate variance Labor efficiency variance Variable overhead rate variance Variable overhead efficiency variance *For the month's production. The following additional information is available for March's production: The following additional information is available for March's production: 600 Actual direct labor-hours Difference between standard and actual cost per COS per backpack produced during March $ 0.20 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. 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 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. What is the standard cost of a single backpack? (Round your answer to 2 decimal places.) Standard cost of a single backpack What was the actual cost per backpack produced during March? (Round your answer to 2 decimal places.) Actual cost per backpack How many yards of material are required at standard per backpack? (Round your answer to 1 decimal place.) Number of yards per backpack What was the materials price variance for March if there were no beginning or ending inventories of materials? (Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect i.e., zero variance). Input all amounts as positive values.) Materials price variance What is the standard direct labor rate per hour? (Round your answers to 2 decimal places.) Standard direct labor rate per hour What was the labor rate variance for March? The labor efficiency variance? (Do not round your intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) Labor rate variance Labor efficiency variance What was the variable overhead rate variance for March? The variable overhead efficiency variance? (Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect i.e., zero variance). Input all amounts as positive values.) Variable overhead rate variance Variable overhead efficiency variance Prepare a standard cost card for one backpack. (Round your answers to 2 decimal places.) Standard Quantity or Hours Standard Price or Rate Standard Cost Direct materials yards 6.00 per yard hours per hour Direct labor Variable manufacturing overhead Total standard cost hours 200 per direct labor-hour $ 0.00
