1. What is the standard direct labor rate per hour?

2. What was the labor rate variance for March? The labor efficiency variance?

3. What was the variable overhead rate variance for March? The variable overhead

   efficiency variance?

4. Prepare a standard cost card for one backpack.

2. Low Country Outfitters produces a lightweight backpack that is popular with college students. Standard variable costs relating to a single backpack are: Standard quantity or hours ? ? ? Direct materials Direct labor Variable manufacturing overhead Total standard cost/unit Standard price or rate $6.25/yard ? $2.75/DLH Standard cost $? ? ? $? Overhead is applied to production on the basis of direct labor-hours. During March, 1,100 backpacks were manufactured and sold. Selected information relating to the month's production is given below: Materials used $ 17,000 $ 15,500 ? $ 1,200 U Direct labor $ 21,000 ? Variable manufacturing overhead $ 3,910 $ 4,200 Total standard cost allowed Actual costs incurred Material price variance Material quantity variance Labor rate variance Labor efficiency variance Variable overhead rate variance Variable overhead efficiency variance ? ? ? ? Low country used 1,550 direct labor hours during the month, and the difference between standard and actual cost per unit produced during the month was 15