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 Cost $ ? Direct materials Direct labor Variable manufacturing overhead Standard Price or Rate $6.00 per yard ? $2 per direct labor-hour Total standard cost $? 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: Materials Used $15,900 $13,750 Direct Labor $7,420 Variable Manufacturing Overhead $1,484 $1,708 $ 600 U 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: Actual direct labor-hours Difference between standard and actual cost per backpack produced during March 880 $0.20 F Required: 1. What is the standard cost of a single backpack? Standard cost for March production: Materials Direct labor Variable manufacturing overhead Total standard cost Number of backpacks produced Standard cost of a single backpack 2. What was the actual cost per backpack produced during March? (Round your answers to 2 decimal places.) Standard cost of a single backpack Deduct difference between standard and actual cost Actual cost per backpack 3. How many yards of material are required at standard per backpack? Total standard cost of materials allowed during March Number of backpacks produced during March Standard materials cost per backpack Standard materials cost per yard Number of yards per backpack 4. What was the materials price variance for March if there were no beginning or ending inventories of materials? (Input all amounts as positive values. 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).) Materials price variance Materials quantity variance Spending variance 5. What is the standard direct labor rate per hour? Standard variable manufacturing overhead cost for March Standard variable manufacturing overhead rate per direct labor- hour Standard direct labor-hours for March Standard direct labor cost for March Standard direct labor rate per hour 6. 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)) Labor rate variance Labor efficiency variance 7. 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)) Variable overhead rate variance Variable overhead efficiency variance 8. 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 Direct labor hours per hour Variable manufacturing overhead hours per direct labor-hour Total standard cost
