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: Standard Quantity or Hours Standard Price or Rate $6.00 per yard Standard Cost Direct materials Direct labor Variable manufacturing overhead $2 per direct labor-hour Total standard cost Overhead is applied to production on the basis of direct labor-hours. During March, 730 backpacks were manufactured and sold. Selected information relating to the month's production is given below: Variable Manufacturing Overhead $2,336 $3,119 Materials Used Direct Labor $14,600 $17,520 $15,200 Total standard cost allowed Actual costs incurred Materials price variance Materials quantity variance Labor rate variance Labor efficiency variance Variable overhead rate variance Variable overhead efficiency variance $720U

Explanation / Answer

4.

Material price variance=$2320+$720=3040 (F)

Note: As per chegg only 4 part can be solved.

1. Standard cost for 1000 backpacks: Direct material $17,520 Direct labor $14,600 Variable manufacturing overhead $2,336 Total Standard Cost $34,456 Standard cost per backpack=$34456/730=$47.20 per backpack

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