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Highland Company 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	?	$4.5 per yard	$?
Direct labor	?	?	?
Variable manufacturing overhead	?	$2 per direct labor-hour	?
Total standard cost			$?

Overhead is applied to production on the basis of direct labor-hours. During March, 525 backpacks were manufactured and sold. Selected information relating to the month's production is given below:

	Materials Used	Direct Labor	Variable Manufacturing Overhead
Total standard cost allowed*	$9,450	$5,880	$1,470
Actual costs incurred	$7,700	?	$1,650
Direct materials price variance	?
Direct materials quantity variance	$450 U
Direct labor rate variance		?
Direct 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:

Actual direct labor-hours	900
Standard overhead rate per direct labor-hour	$3.9
Standard price of one yard of materials	$7.8
Difference between standard and actual cost per backpack produced during March	$.20	F

Requirement 2:

What is the standard direct labor rate per hour? (Round your answer to 2 decimal places. Omit the "$" sign in your response.)

Standard variable manufacturing overhead cost for March ___________

Standard variable manufacturing overhead rate per direct labor-hour ___________

Standard direct labor-hours for March __________

Standard direct labor cost for March __________

Standard direct labor rate per hour ___________

Requirement 3:

What was the direct labor rate variance for March? The direct labor efficiency variance? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Omit the "$" sign in your response.)

Labor rate variance ___________ ____________
Labor efficiency variance ___________ ____________

Requirement 4:

What was the variable overhead rate variance for March? The variable overhead efficiency variance?(Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Omit the "$" sign in your response.)

Variable overhead rate variance ___________ ____________
Variable overhead Efficiency variance ___________ ____________

Requirement 5:

Prepare a standard cost card for one backpack. (Round your answers to 2 decimal places. Omit the "$" sign in your response.)

	Standard Quantity or Hours	Standard Price or Rate	Standard Cost
Direct materials	____________yards	4.5 per yard	$__________
Direct labor	_____________ours	$__ per hour	__________
Variable manufacturing overhead	____________hours	2.0 per hour	__________
Total standard cost			$_________

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