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Problem 10-16 (Algo) Comprehensive Variance Analysis [LO10-1, LO10-2, LO10-3] Highland Company produces a lightweight backpack popular with college students. Standard variable costs relating to a
Problem 10-16 (Algo) Comprehensive Variance Analysis [LO10-1, LO10-2, LO10-3] Highland Company produces a lightweight backpack popular with college students. Standard variable costs relating to a single backpack are given below: Direct materials Direct labor Variable manufacturing overhead Total standard cost per unit Total standard cost allowed* Actual costs incurred Standard Quantity or Hours ? ? ? Overhead is applied to production based on direct labor-hours. During March, 520 backpacks were manufactured and sold. Selected information relating to the month's production is given below: Materials Used $ 15,600 $ 14,325 Domuinad Standard Price or Rate $ 6.00 per yard Materials 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: ? $ 1,590 U Actual direct labor-hours Difference between standard and actual cost per backpack produced during March ? $ 2 per direct labor-hour Direct Variable Manufacturing Labor $ 7,280 ? ? ? 780 $ 0.20 F Overhead $ 1,456 $ 1,717 Standard Cost $? ? ? $? ? ?
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