Check my work 9 Highland Company produces a lightweight backpack that is popular
ID: 2563226 • Letter: C
Question
Check my work 9 Highland Company produces a lightweight backpack that is popular with college students. Standard variable costs relating to a single backpack are given below: 11.12 points Standard Quantity or Hours Standard Price or Rate Standard Cost Direct materials Direct labor $4.00 per yard per direct $ 2 labor-hour eBook Variable manufacturing overhead Total standard cost per unit Print References Overhead is applied to production on the basis of direct labor-hours. During March, 490 backpacks were manufactured and sold. Selected information relating to the month's production is given below: Variable Materials Used $ 8,820 7,035 Direct Manufacturing Labor $5,586 Overhead $1,176 $1,249 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 $ 560U For the month's production.Explanation / Answer
Standard Cost allowed Direct Material 8820 Direct Labor 5586 Manufactuirng overhead 1176 Total standard cost 15582 No. of backkpack produced 490 Std cost per backpack 31.80 Std cost per backpack 31.80 Less: Favorable variance -0.2 Actual cost per backpack 31.60 Actual cost per backpack 31.60 No. of backpack produced 490 Total actual cost 15484 Less: actual cost of material 7035 actual cost of variable man. Overhead 1249 Actual cost of direct labor 7200 Actual direct labor hours 750 Std variable overhead cost 1176 Std rate per hour 2 Std direct labor hours 588 ans 7 Variable overhead rate variance 251 F (AH*AR)-(AH*SR) -251 1249-(750*2) Variable overhead efficiency variance 324 U SR*(AH-SR allowed) 2*(750-588)