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 HoursStandard Price or RateStandard Cost Direct materials?$4.00 per yard $ ? Direct labor??? Variable manufacturing overhead?$2 per direct labor-hour? Total standard cost $?

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 months production is given below:

Materials Used

Direct Labor

Variable Manufacturing Overhead

Total standard cost allowed*

$6,720

$4,368

$1,092

Actual costs incurred

$5,340

?

$827

Materials price variance

?

Materials quantity variance

$ 400 U

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 Marchs production:

Actual direct labor-hours

700

Difference between standard and actual cost per backpack produced during March

$0.15

F

PART1.

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

PART2.

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

PART3.

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

PART4.

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

PART5.

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		$4.00	per yard
Direct labor		hours			per hour
Variable manufacturing overhead		hours		$2.00	per direct labor-hour
Total standard cost