PROBLEM 8-16A Comprehensive Variance PROBLEM (LO1, LO2, LO3, LO4) CHECK FIGURE (1) Standard cost: $33.75 (3) 2.70 yards per backpack Celtron Inc. 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 ? $6.50 per yard ? Direct labor ? ? ? Variable manufacturing overhead ? $2.80 per direct-labor hour ? Total standard cost ? Overhead is applied to production on the basis of direct labor-hours. During September, 1,000 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 for the months production $17,550 $12,000 $4,200 Actual costs incurred $14,700 ? $3,500 Materials price variance ? Materials quantity variance $650 U Labor rate variance ? Labor efficiency variance ? Variable overhead spending variance ? Variable overhead efficiency variance ? The following additional information is available for Septembers production: Actual direct labor-hours 1,600 Difference between standard and actual cost per backpack produced during September $2.15 F There were no beginning or ending inventories of raw materials. Required: 1. What is the standard cost of a single backpack? 2. What was the actual cost per backpack produced during September? 3. How many yards of material are required at standard per backpack? 4. What was the materials price variance for September? 5. What is the standard direct labor rate per hour? 6. What was the labor rate variance for September? The labor efficiency variance? 7. What was the variable overhead spending variance for September? The variable overhead efficiency variance? 8. Prepare a standard cost card for one backpack.