Goiziness Schoolueta Bus Operations And Supply Chain Management Assignment Help - Highland Company

Question - 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 ? $6.00 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, 770 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 allowe ...Read More d* $18,480 $16,016 $2,464
Actual costs incurred $16,000 ? $3,460
Materials price variance ?
Materials quantity variance $ 720 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’s production:

Actual direct labor-hours 1,330
Standard overhead rate per direct labor-hour $2.00
Difference between standard and actual cost per backpack produced during March $0.10 F


Required:

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


2. What was the actual cost per backpack produced during March? (Round your answers to 2
decimal places.)


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


4.
What was the materials price variance for March if there were no beginning or ending inventories
of materials? (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).)


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


6.
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))


7.
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))


8. Prepare a standard cost card for one backpack. (Round your answers to 2 decimal places.) ...Read Less

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