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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 or Hours 2 7 Standard Price or Rate $3.00 per yard ? per direct 5 2 labor-hour Standard Coat 52 2 Direct materials Direct labor Variable manufacturing overhead Total standard cost per unit ? $? Overhead is applied to production on the basis of direct labor-hours. During March, 570 backpacks were manufactured and sold. Selected information relating to the month's production is given below: Materiale Used $ 8,550 $ 6,080 2 5 570 U Direct Labor $6,384 7 Variable Manufacturing Overhead $1,596 $2,812 Total standard coat allowed Actual costs incurred Materiale 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 Ditterence between standard and actual cost per backpack produced during March 855 5 0.20 SOK 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 boginning 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 Morch? The variable overhead efficiency variance? 8. Prepare a standard cost card for one backpack int anres

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