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	?	$	6.00	per yard	$	?
Direct labor	?		?			?
Variable manufacturing overhead	?	$	2	per direct labor-hour		?
Total standard cost per unit					$	?

Overhead is applied to production on the basis of direct labor-hours. During March, 520 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*	$	15,600		$	7,280		$	1,456
Actual costs incurred	$	14,325			?		$	1,717
Materials price variance		?
Materials quantity variance	$	1,590	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		780
Difference between standard and actual cost per backpack produced during March	$	0.20	F

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.

What was the materials price variance for March if there were no beginning or ending inventories of materials? (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). Input all amounts as positive values.)

Materials price variance

$315selected answer incorrect

Uselected answer incorrect

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). Input all amounts as positive values.)

Variable overhead rate variance	$156selected answer incorrect	Uselected answer correct
Variable overhead efficiency variance	$104selected answer correct	Uselected answer correct

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	5.00selected answer correct	yards		$6.00	per yard	$30.00selected answer correct
Direct labor	1.50selected answer incorrect	hours		10.00selected answer correct	per hour	15.00selected answer incorrect
Variable manufacturing overhead	1.50selected answer incorrect	hours		$2.00	per direct labor-hour	3.00selected answer incorrect
Total standard cost						$48.00