6 Help Save& Exit Submit Check my work Highlandc backpack are given below with c

Question

6 Help Save& Exit Submit Check my work Highlandc backpack are given below with college students. Standard variable costs relating to a single Standard Quastit tandard Pri Direct materials Direct labor $5.00 per yard Variable manufacturing overhead Total standard cost per unit per direct 5 2 labor-hour Overhead is applied to production on the basis of direct laboe-hours. During March, 720 backpacks were manufactured and sold ces Selected information relating to the month's production is given below Variable Materials Direct Hanufactur ing Total standard cost allowed* Actual costs incurred Used 5 14,400 s 12,096 Labor $13.248 4,716 $720 Materials quantity variance Labor effieleney variance Variable overhead rate variance Variable overhead efficieney variance For the month's production The following additional information is available for March's production: 1,080 Actual direct labor-hours Diffezénce betveen standard and actual coat per 0.25F backpack produced during March MacBook Air 4)

Explanation / Answer

Requirement 1 Standard Cost of a single bagpack Total Statdard Cost Allowed $29,952 Output 720 Standard Cost of a single bagpack $41.60 Requirement 2 Actual Cost of a single bagpack Standard Cost of a single bagpack $41.60 Less : Favourable Varaiance -$0.25 Actual Cost of a single bagpack $41.35 Requirement 3 Statdard Requirement of material(yards) per single bagpack Statdard Material Cost of single Bagpack $20.00 Cost per Yard of Material $5.00 Yard Requirement 4.00 Yards Total Standard Requirement 2880 Yards Calculation of actual material yard consumed Material Usage Variance=(std.input-Act.input)Std.Price 720U=(2,880-Act.input)5 Hence Actual input = 3,024 yards Actual Rate Per Yard = $12,096/3,024 = $4 Requirement 4 Material Price Variance=(std.price-Act.price)Act.input =(5-4)3024 $3,024 F Calculation of statdard labour hours =(statdard variable overhead/stadard rate per labour hour) =($2,304/$2) 1152 Hours Requirenment 5 Total Standards labour cost $13,248 Standard Hours 1152 Standard Labour rate per hour $11.50 Actula labour Cost $14,200.50 Actual labour Hours 1000 Actual labour rate pe hour $14.20 Requirement 6 Labour Rate Varainace=(Std.rate - Act.Rate)Act.Hours =($11.5-$12.95)1000 -$2,700.50 U Labour Efficiency Varainace=(Std.Hours-Act.hours)Std.rate =(1152-1000)*$11.5 $1,748.00 F Actual variable overhead cost $4,716 Actual Labour Hours 1000 Actual variable overhead per labour hour $4.72 Requirement 7 variable Overhead Rate Varainace=(Std.rate - Act.Rate)Act.Hours =($2-$4.72)*1000 -$2,720.00 U variable overhead Efficiency Varainace=(Std.Hours-Act.hours)Std.rate =(1152-1000)*$2 $304.00 F Requirement 8 Standard Cost card for one bagpack Particulars Stardard quantity or hours Standard price or rate Standard Cost Direct Material 4.00 Yard $5.00 Per Yard $20.00 Direct Labour 1.60 Hours $11.50 Per Hours $18.40 variable manufacturing Overhead 1.60 Hours $2.00 Per Hours $3.20 Total Standard Cost per unit $41.60

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