Hiohland Company p owit backak at is popular with college students. variable cos

Question

Hiohland Company p owit backak at is popular with college students. variable costs relating to a single backpack are given below Standard Quantity Standard Price Standard or Hours or Rate $6 per yard Cost $7 Direct materials Direct labor Variable manufacturing overhead $3 per direct abor-hour Total standard cost $7 Overhead is applied to production on the basis of direct labor-hours. During March, 1,000 backpacks were manufactured and sold. Selected information relating to the month's production is given below Materials Used $16,800 $15,000 Variable Overhead $4,200 Total standard cost allowed Actual costs incurred Direct Labor $10,500 $3,600 Materials price variance Materials quantity variance Labor rate variance Labor efficiency variance Variable overhead rate variance Variable overhead efficiency variance $1,200 U "For the month's production. The following additional information is available for March's production Actual direct labor-hours Standard overhead rate per direct labor-hour Difference between standard and actual cost per backpack produced during March 1500 $3.00 0.15 F 1. What is the standard cost of a single backpack? Standard cost for March production: Materials Direct labor Variable manufacturing overhead Total standard cost Number of backpacks producecd Standard cost of a single backpach

Explanation / Answer

1. Standard cost per backpack:

Materials=$16,800

Direct labour=$10,500

Variable manufacturing overhead=$4,200

Total standard cost=$31,500

Number of backpack produced=1000

Standard cost of single backpack=$31.50 per backpack

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