90.2K

Verified Solution

Link Copied!

Highland Company produces a lightweight backpack that is popular with college students. Overhead is applied to production on the basis of direct labor hours. HIGHLAND COMPANY Standard Variable Costs for a single backpack: Standard Standard Standard Qty or hour rs Price or Rate Cost Direct materials $6 /yard Direct labor Variable manufacturing overhead $3 /hour Total standard cost Backpacks manufactured and sold during March 000 Selected information relating to the month's production is given below: variable Mfg. Materials Direct Used Labo Overhead Total standard cost allowed $16.800 $10.500 $4,200 $3,600 Actual costs incurred $15,000 Materials price variance Materials quantity variance $1,200 U Labor rate variance Labor efficiency variance Variable overhead spending variance Variable overhead efficiency variance Additional information for March's production: Actual direct labor-hours 1,500 $3.00 Standard overhead rate per hour Standard price of one yard of materials $6.00 Difference between standard and actual cost per backpack produced in March $0.15 F Require: 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? 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 spending variance for March? The variable overhead efficiency variance? 8. Prepare a standard cost card for one backpack

Answer & Explanation Solved by verified expert

See Answer