Highland Company produces a lightweight backpack that is popular with college students. Standard variable costs relating to a singlebackpack are given below:Direct materialsDirect laborvariable manufacturing overheadTotal standard cost per unitStandardQuantity orHours???Materials Used$ 6,720$ 5,355standard Price or Rate$4.00 per yardOverhead is applied to production on the basis of direct labor-hours. During March, 420 backpacks were manufactured and sold.Selected Information relating to the month's production is given below:?$ 420 UTotal standard cost allowed*Actual costs incurred.Materials price varianceMaterials quantity varianceLabor rate varianceLabor efficiency varianceVariable overhead rate varianceVariable overhead efficiency variance*For the month's production.The following additional Information is available for March's production:Actual direct labor-hoursDifference between standard and actual cost per backpackproduced during March?$2 per direct labor-hourDirectLabor$ 4,368???630$ 0.15 FVariable ManufacturingOverhead$ 1,092$ 1,407standard Cost$???$???Required:Hint: It may be helpful to complete a general model diagram for direct materials, direct labor, and variable manufacturing overheadbefore attempting to answer any of the requirements.1. What is the standard cost of a single backpack?2. What was the actual cost per backpack produced during March?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?5. What is the standard direct labor rate per hour?6. What was the labor rate variance for March? The labor efficiency variance?7. What was the variable overhead rate variance for March? The variable overhead efficiency varlance?8. Prepare a standard cost card for one backpack.

Name: Highland Company produces a lightweight backpack that is popular with
Uploaded: 2024-03-20T06:33:06.000Z
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Description: Highland Company produces a lightweight backpack that is popular with college students. Standard variable costs relating to a singlebackpack are given below:Direct materialsDirect laborvariable manufacturing overheadTotal standard cost per unitStand

Solution 1: Computation of Standard cost of a Single Backpack Standard cost for March…

Business

Accounting

Highland Company produces a lightweight backpack that is popular with college students. Standard variable costs relating to a si backpack are given below: Direct materials. Direct labor variable manufacturing overhead Total standard cost per unit standard Quantity or Hours ? ? Total standard cost allowed* Actual costs incurred. Materials price variance Ustoniale quantity unico standard Price or Rate $ 4.00 per yard ? $2 per direct labor-hour Overhead is applied to production on the basis of direct labor-hours. During March, 420 backpacks were manufactured and sold. Selected Information relating to the month's production is given below: Materials Used $ 6,720 $ 5,355 ? 420 Direct Labor $ 4,368 ? standard Cost $? ? ? $? Variable Manufacturing overhead $ 1,092 $ 1,407

Highland Company produces a lightweight backpack that is popular with college students. Standard variable costs relating to a si backpack are given below: Direct materials. Direct labor variable manufacturing overhead Total standard cost per unit standard Quantity or Hours ? ? Total standard cost allowed* Actual costs incurred. Materials price variance Ustoniale quantity unico standard Price or Rate $ 4.00 per yard ? $2 per direct labor-hour Overhead is applied to production on the basis of direct labor-hours. During March, 420 backpacks were manufactured and sold. Selected Information relating to the month's production is given below: Materials Used $ 6,720 $ 5,355 ? 420 Direct Labor $ 4,368 ? standard Cost $? ? ? $? Variable Manufacturing overhead $ 1,092 $ 1,407

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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