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, 1,200 backpacks were manufactured and sold. Selected information relating to the month's production is given below:

What is the standard cost of a single backpack? (Round your answer to 2 decimal places. Omit the "$" sign in your response.)

What was the actual cost per backpack produced during March? (Round your answer to 2 decimal places. Omit the "$" sign in your response.)

How many yards of material are required at standard per backpack? (Round your answer to 2 decimal places.)

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.)

What is the standard direct labor rate per hour? (Round your answer to 2 decimal places. Omit the "$" sign in your response.)

What was the direct labor rate variance for March? The direct labor efficiency variance? (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.)

What was the variable overhead rate variance for March? The variable overhead efficiency variance?(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.)

Prepare a standard cost card for one backpack. (Round your answers to 2 decimal places. Omit the "$" sign in your response.)

$  

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

Explanation / Answer

Total units produced and sold 1100 units
Requirement 1
Standard material cost=29480
Standard material cost per unit=29480/1100 26.8
Standard labor cost=16016
standard labor cost per unit=16016H0 14.56
Standard overhead cost=5808
standard overhead cost per unit=5808/1100 5.28
Total standard cost per unit 46.64
Requirement 2
Actual units produced 1100 units
Actual material cost=25630
Actual material cost per unit=25630H0 23.3
Actual over head cost=5008
Actualoverhead cost per unit=5008/1100 4.56
Actual labor per unit(45.89-23.3-4.56) 18.03
Total actual cost per unit 45.89


Total standard cost per unit 46.64
Less:Difference between standard and actual
cost per unit 0.75
Actual cost per unit 45.89

Requirement 3
Standard material required per backpack
Standard material cost per unit 26.8
standard cost per one yard 6.7
standard material=standard costperunit/rate 26.8/6.7
4yards

Requirement 4
Direct materialprice variance
(Actual quantity*actual price)-(Actual quantity*
standard price)

Actual quantity required=23.3/6.7= 3.47 yards

(3.47*23.3)-(3.47*26.8)=12.91Unfavourable
80.85-92.99=12.91(unfavourable)

Requirement5
standard direct labor rate per hour
Standard labour hour cost per unit 14.56
stamdard pverhead rate per dirct labor 3.3
standard labor rate per hour=14.56/3.3 4.41


Requirement 6
Labor rate variance
(actual hours*actual rate)-(actual hours*standard rate)
(5.46*18.3)-(5.46*14.56)
99.91-79.49=20.42(Unfavourable)

Labor efficiency variance

(Actual hours*standard rate)-(standard hours*
standard rate)

(5.46*14.56)-(4.41*14.56)
79.49-64.20=15.29(unfavourable)

Requirement 8
Standard material4400 yards at 6.7 per yard 29480
standard labor 4851 hrs at 3.3 per hrs 16008
overheads 5808
Total standard cost 103496

requirement 7
Overhead efficiency variance
(Actual hrs worked*standard rate)-(standard
hours *standard rate)

(1960*5.28)-(1960*5.28)=0 variance

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