Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

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 Standard Cost
Direct materials ? $4.70 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, 700 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* $13,160 $10,500 $2,100
Actual costs incurred $10,730 ? $2,470
Materials price variance ?
Materials quantity variance $ 470 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 1,220
Standard overhead rate per direct labor-hour $2.00
Difference between standard and actual cost per backpack produced during March $0.34 F

image text in transcribed

image text in transcribed

image text in transcribed

image text in transcribed

image text in transcribed

image text in transcribedimage text in transcribed

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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Management Accounting For Beginners

Authors: Nicholas Apostolides

1st Edition

0815351224, 978-0815351221

More Books

Students also viewed these Accounting questions