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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 HoursStandard Price or RateStandard Cost Direct materials?$4.00 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, 420 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*	$6,720	$4,368	$1,092
Actual costs incurred	$5,340	?	$827
Materials price variance	?
Materials quantity variance	$ 400 U
Labor rate variance		?
Labor efficiency variance		?
Variable overhead rate variance			?
Variable overhead efficiency variance			?
*For the month's production. The following additional information is available for Marchs production: Actual direct labor-hours 700 Difference between standard and actual cost per backpack produced during March $0.15 F PART1. What was the materials price variance for March if there were no beginning or ending inventories of materials? (Input all amounts as positive values. Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).) Materials price variance Materials quantity variance Spending variance

PART2.

What is the standard direct labor rate per hour?

	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

PART3.

What was the labor rate variance for March? The labor efficiency variance? (Do not round your intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance)) Labor rate variance Labor efficiency variance

PART4.

What was the variable overhead rate variance for March? The variable overhead efficiency variance? (Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance))

	Variable overhead rate variance Variable overhead efficiency variance

PART5.

Prepare a standard cost card for one backpack. (Round your answers to 2 decimal places.) Standard Quantity or Hours Standard Price or Rate Standard Cost Direct materials yards $4.00 per yard Direct labor hours per hour Variable manufacturing overhead hours $2.00 per direct labor-hour Total standard cost

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