70.2K

Verified Solution

Link Copied!

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 1:

a)What is the standard cost of a single backpack? (Round your answer to 2 decimal places. Omit the "$" sign in your response.)

Standard cost for March Production: Materials ___________ Direct Labor __________ Variable manuf overhead ___________ Total standard cost Number of backpacks produced __________ Standard cost of a single backpack __________

b)What was the actual cost per backpack produced during March? (Round your answer to 2 decimal places. Omit the "$" sign in your response.)

Standard cost of a single backpack _________

Deduct difference between standard and actual cost _________

Actual cost per backpack _________

c)How many yards of material are required at standard per backpack? (Round your answer to 2 decimal places.) Total standard cost of materials allowed during March _________ Number of backpacks produced during March _________ Standard materials cost per backpack _________ Standard materials cost per yard _________ Number of yards per backpack _________

d)What was the direct materials price variance for March? (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.)

Materials price variance __________ ___________

Materials quantity variance __________ __________

Spending bariance _________ __________

Answer & Explanation Solved by verified expert

See Answer