Highland Company produces a lightweight backpack that is popular with college st
ID: 2598282 • Letter: H
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, 640 backpacks were manufactured and sold. Selected information relating to the month’s production is given below:
What was the actual cost per backpack produced during March? (Round your answers to 2 decimal places.)
How many yards of material are required at standard per backpack?
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).)
What is the standard direct labor rate per hour?
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))
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))
Prepare a standard cost card for one backpack. (Round your answers to 2 decimal places.)
Standard Quantityor 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 $?
Explanation / Answer
1
what is the standard cost of single backpack?
standard cost for March production
Materials
$14,592
Direct Labor
$8,064
Variable Manufacturing overhead
$1,536
Total standard cost
$24,192
Number of backpacks produced
$640
standard cost of a single backpack
37.8
2
what was the actual cost per backpack produced during March?
standard cost of single Backpack
$33.75
Less: Difference between standard and actual cost
($0.20)
Actual cost per backpack
$33.55
3
How many yards of material are required at standard per back pack?
Total standard cost of materials allowed during March
$14,592
Number of backpack produced during March
$640
standard material cost per backpack
$22.80
standard material cost per yard
$6
Number of yards per backpack
$3.80
yards per backpack
4
standard cost of raw materials
$14,592
Actual cost of raw materials
$12,710
Total Variance
$27,302
F
Price variance (Balancing fig)
$26,642
F
Quantity variance
$660
U
Total variance
$27,302
F
As per chegg guidelines, when there are multiple sub parts, only first four subparts will be answered
1
what is the standard cost of single backpack?
standard cost for March production
Materials
$14,592
Direct Labor
$8,064
Variable Manufacturing overhead
$1,536
Total standard cost
$24,192
Number of backpacks produced
$640
standard cost of a single backpack
37.8
2
what was the actual cost per backpack produced during March?
standard cost of single Backpack
$33.75
Less: Difference between standard and actual cost
($0.20)
Actual cost per backpack
$33.55
3
How many yards of material are required at standard per back pack?
Total standard cost of materials allowed during March
$14,592
Number of backpack produced during March
$640
standard material cost per backpack
$22.80
standard material cost per yard
$6
Number of yards per backpack
$3.80
yards per backpack
4
standard cost of raw materials
$14,592
Actual cost of raw materials
$12,710
Total Variance
$27,302
F
Price variance (Balancing fig)
$26,642
F
Quantity variance
$660
U
Total variance
$27,302
F
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