Highland Company produces a lightweight backpack that is popularwith college students. Standard variable costs relating to a singlebackpack are given below:

	Standard Quantity or Hours	Standard Price or Rate			Standard Cost
Direct materials	?	$	4.00	per yard	$	?
Direct labor	?		?			?
Variable manufacturing overhead	?	$	2	per direct labor-hour		?
Total standard cost per unit					$	?

Overhead is applied to production on the basis of directlabor-hours. During March, 700 backpacks were manufactured andsold. Selected information relating to the month’s production isgiven below:

	Materials Used			Direct Labor			Variable Manufacturing Overhead
Total standard cost allowed*	$	11,200		$	10,500		$	2,100
Actual costs incurred	$	8,925			?		$	4,032
Materials price variance		?
Materials quantity variance	$	700	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 March’sproduction:

Actual direct labor-hours		1,050
Difference between standard and actual cost per backpackproduced during March	$	0.34	F

Required:

Hint: It may be helpful to complete a general model diagram fordirect materials, direct labor, and variable manufacturing overheadbefore attempting to answer any of the requirements.

1. What is the standard cost of a single backpack?

2. What was the actual cost per backpack produced duringMarch?

3. How many yards of material are required at standard perbackpack?

4. What was the materials price variance for March if there wereno beginning or ending inventories of materials?

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

6. What was the labor rate variance for March? The laborefficiency variance?

7. What was the variable overhead rate variance for March? Thevariable overhead efficiency variance?

8. Prepare a standard cost card for one backpack.