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:

	Standard Quantity or Hours	Standard Price or Rate	Standard Cost
Direct materials	?question mark	$ 4.00	per yard	$ ?question mark
Direct labor	?question mark	?question mark		?question mark
Variable manufacturing overhead	?question mark	$ 2	per direct labor-hour	?question mark
Total standard cost per unit	$ ?question mark

Overhead is applied to production based on direct labor-hours. During March, 700 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*	$ 11,200		$ 10,500	$ 2,100
Actual costs incurred	$ 8,925		?question mark	$ 4,032
Materials price variance	?question mark
Materials quantity variance	$ 700	U
Labor rate variance			?question mark
Labor efficiency variance			?question mark
Variable overhead rate variance	?question mark
Variable overhead efficiency variance	?question mark

*For the month's production.

The following additional information is available for Marchs production:

Actual direct labor-hours	1,050
Difference between standard and actual cost per backpack produced during March	$ 0.34	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.

PLEASE ANSWER IT ALL!!!