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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

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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 Standard Price Standard or Hours or Rate Coat Direct materials $4.50 per yard 52 Direct labor ? 2 per direct Variable manufacturing overhead 2 $2 labor-hour Total standard cont per unit 2 2 bok onces Overhead is applied to production on the basis of direct labor-hours. During March, 530 backpacks were manufactured and sold, Selected information relating to the month's production is given below: Variable Materials Direct Manufacturing Used Labor Overhead Total standard cost allowed 59,549 55,936 Actual conta Ineurred $1,404 $ 3,645 2 $1,690 Materials price variance 7 Materials quantity variance $1,5750 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: Mutual direct labor-hours Difference between standard and actual cont per backpack produced during March 795 $ 0.20 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

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