L QUESTION 3 (20 marks) 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 $6.00 per yard Direct materials Direct labore Variable manufacturing overhead ?2 ? $? ?e ?2 ?] $2 per direct labor hour Total standard cost per unit $? Overhead is applied to production on the basis of direct labor-hours. During March, 400 backpacks were manufactured and sold. Selected information relating to the month's production is given below:- Overhead is applied to production on the basis of direct labor-hours. During March, 400 backpacks were manufactured and sold. Selected information relating to the month's production is given below: Materials Used Direct Labor Variable Manufacturing Overhead Total standard cost allowed* Actual costs incurred $9,120 $5,5204 $5,040 ? $960 $2,6202 Materials price variance Materials quantity variance ? $1,920 (U) ? Labor rate variance Labor efficiency variance ? E . Variable overhead rate variance Variable overhead efficiency variance- ?2 ?4 *For the month's production." The following additional information is available for March's production:- Actual direct labor-hours Difference between standard and actual cost per backpack produced during March 600 $0.20 (F) QUESTION 3 (continued) Required: (a) What is the standard cost of a single backpack? (1 mark) (b) What was the actual cost per backpack produced during March? (1 mark) (c) How many yards of material are required at standard per backpack? (2 marks) (d) What was the materials price variance for March if there were no beginning or ending inventories of materials? (2 marks) (e) What is the standard direct labor rate per hour? (2 marks) (f) What was (i) the labor rate variance and (ii) the labor efficiency variance for March? (6 marks) What was (i) the variable overhead rate variance and (ii) the variable overhead efficiency variance for March? (6 marks) (Show workings and round to 2 decimal places)