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			$?

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 months production is given below:

	Materials Used	Direct Labor	Variable Manufacturing Overhead
Total standard cost allowed*	$15,900	$7,420	$1,484
Actual costs incurred	$13,750	?	$1,708
Materials price variance	?
Materials quantity variance	$600U
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	880
Difference between standard and actual cost per backpack produced during March	$0.20	F

Assume there are no beginning or ending inventories of materials.

QUESTIONS

4:

a. Materials Price Variance

b. Materials Quantity Variance

c. Spending Variance

5:

a. Standard Variable manufacturing overhead cost for March

b. Standard variable manufacturing overhead rate per direct labor-hour

c. standard direct labor hours for March

d. standard direct labor cost for March

e. standard direct labor rate per hour

6:

a. labor rate variance

b. labor rate efficiency variance

7:

a. variable overhead rate variance

b. variable overhead efficiency variance

8: Prepare a standard cost card for one backpack:

a. Direct materials: calculate standard yards, $6/yard, calculate standard cost

b. Direct labor: calculate standard hours, calculate price per hour, calculate standard cost

c. Variable manufacturing overhead: calculate standard hours, $2/hour, calculate standard cost

d. Calculate total standard cost