Highland Company produces a lightweight backpack that is popular with college students. Below are the standard variable costs associated with a single backpack:

	Standard Quantity or Hour	Standard price or Evaluate			Standard Cost
Direct materials	?	$	3.00	per yard	$	?
direct labor	?		?			?
Variable production load	?	$	2	directly per working hour		?
Total standard cost per unit					$	?

Overhead is applied directly to production on a labor-hours basis. During the month of March, 570 backpacks were produced and sold. Selected information on moon production is given below:

	Materials Used			direct labor			Variable Generating overhead
Allowed total standard cost*	$	8.550		$	6.384		$	1.596
Actual costs	$	6.080			?		$	2.812
Material price difference		?
Material quantity difference	$	570	sen
Labor rate difference					?
Labor productivity difference					?
Variable overhead rate variance								?
Variable overhead efficiency variance								?

*For monthly production.

The following additional information is available for March production:

Actual direct working hours		855
Difference between standard and actual cost per backpack produced in March	$	0.20	F

 

Requirements:

1. What is the standard cost of a single backpack?

2. What was the actual cost per backpack produced in March?

3. How many meters of material are required as standard per backpack?

4. If there were no starting and ending stocks of materials, what was the material price difference for March?

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

6. What was the labor rate difference for March? Labor productivity variance?

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

8. Prepare a standard cost card for a backpack.