Highland Company produces a lightweight backpack that is popular with college st

Question

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

$?      

      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:

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               _________      __________

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

$?      

Explanation / Answer

Please hit LIKE button if this helped. For any further explanation, please put your query in comment, will get back to you. Part a Units Standard Cost Total Q/Hour Rate Direct Material 525 9450 18 4 4.5 Direct Labor 525 5880 11.2 1.4 8 Var Ovh 525 1470 2.8 1.4 2 Standard Cost 16800 32 Part b Actual Cost 32-0.2 31.8 Total Actual Cost 31.8*525 16695 Part c Total standard cost of materials allowed during March _________ 9450 Number of backpacks produced during March              _________ 525 Standard materials cost per backpack                          _________ 18 Standard materials cost per yard                                  _________ 4.5 Number of yards per backpack        4 Part d Standard Cost of Material Used 9450 Actual Cost of Material Used 7700 Total Variance 1750 Favorable Quantity Variance 450 Unfavorable Price Variance 1750+450 2200 Favorable

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