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Highland Company produces a lightweight backpack that is popular with college students. Standard variable costs relating to a single backpack are given below: Direct materials Direct labor Variable manufacturing overhead Total standard cost per unit Standard Quantity or Hours ? ? ? Materials Used $ 11, 200 $ 8,925 ? $700 U Standard Price or Rate $ 4.00 per yard Overhead is applied to production on the basis of direct labor-hours. During March, 700 backpacks were manufactured and sold. Selected information relating to the month's production is given below: Actual direct labor-hours Difference between standard and actual cost per backpack produced during March 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 *For the month's production. The following additional information is available for March's production: Direct Labor $ 10,500 ? ? $2 per direct labor-hour ? ? 1,050 1. What is the standard cost of a single backpack? 2. What was the actual cost per backpack produced during March? $0.34 F Variable Manufacturing Overhead $2,100 $ 4,032 ? Standard Cost $? ? ? $? Required: Hint: It may be helpful to complete a general model diagram for direct materials, direct labor, and variable manufacturing overhead before attempting to answer any of the requirements. 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 variance? 8. Prepare a standard cost card for one backpack.

Highland Company produces a lightweight backpack that is popular with college students. Standard variable costs relating to a single backpack are given below: Direct materials Direct labor Variable manufacturing overhead Total standard cost per unit Standard Quantity or Hours ? ? ? Materials Used $ 11, 200 $ 8,925 ? $700 U Standard Price or Rate $ 4.00 per yard Overhead is applied to production on the basis of direct labor-hours. During March, 700 backpacks were manufactured and sold. Selected information relating to the month's production is given below: Actual direct labor-hours Difference between standard and actual cost per backpack produced during March 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 *For the month's production. The following additional information is available for March's production: Direct Labor $ 10,500 ? ? $2 per direct labor-hour ? ? 1,050 1. What is the standard cost of a single backpack? 2. What was the actual cost per backpack produced during March? $0.34 F Variable Manufacturing Overhead $2,100 $ 4,032 ? Standard Cost $? ? ? $? Required: Hint: It may be helpful to complete a general model diagram for direct materials, direct labor, and variable manufacturing overhead before attempting to answer any of the requirements. 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 variance? 8. Prepare a standard cost card for one backpack.

Principles of Accounting Volume 2
Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter6: Activity-based, Variable, And Absorption Costing
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Required 1 Required 2 Required 3 Required 4 Direct materials Direct labor Variable manufacturing overhead Total standard cost yards hours hours Prepare a standard cost card for one backpack. (Round your answers to 2 decimal places.) Standard Quantity or Hours $ Required 5 $ Required 6 Standard Price or Rate Required 7 4.00 per yard per hour 2.00 per direct labor-hour Required 8 Standard Cost
Transcribed Image Text:Required 1 Required 2 Required 3 Required 4 Direct materials Direct labor Variable manufacturing overhead Total standard cost yards hours hours Prepare a standard cost card for one backpack. (Round your answers to 2 decimal places.) Standard Quantity or Hours $ Required 5 $ Required 6 Standard Price or Rate Required 7 4.00 per yard per hour 2.00 per direct labor-hour Required 8 Standard Cost
Hignianu Company produces a lightweigni Dackpack inal is popular with college students. Standaru variable costs relating to a single backpack are given below: Direct materials Direct labor Variable manufacturing overhead Total standard cost per unit Standard Quantity or Hours ? ? ? Standard Price or Rate $4.00 per yard Direct Materials Used Labor $ 11, 200 $ 8,925 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 *For the month's production. The following additional information is available for March's production: ? $ 700 U Overhead is applied to production on the basis of direct labor-hours. During March, 700 backpacks were manufactured and sold. Selected information relating to the month's production is given below: Actual direct labor-hours Difference between standard and actual cost per backpack produced during March ? $2 per direct labor-hour $ 10,500 ? ? ? 1,050 $ 0.34 F Variable Manufacturing Overhead $ 2,100 $ 4,032 ? Standard Cost ? ? $ ? Required: Hint: It may be helpful to complete a general model diagram for direct materials, direct labor, and variable manufacturing overhead before 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 variance? 8. Prepare a standard cost card for one backpack.
Transcribed Image Text:Hignianu Company produces a lightweigni Dackpack inal is popular with college students. Standaru variable costs relating to a single backpack are given below: Direct materials Direct labor Variable manufacturing overhead Total standard cost per unit Standard Quantity or Hours ? ? ? Standard Price or Rate $4.00 per yard Direct Materials Used Labor $ 11, 200 $ 8,925 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 *For the month's production. The following additional information is available for March's production: ? $ 700 U Overhead is applied to production on the basis of direct labor-hours. During March, 700 backpacks were manufactured and sold. Selected information relating to the month's production is given below: Actual direct labor-hours Difference between standard and actual cost per backpack produced during March ? $2 per direct labor-hour $ 10,500 ? ? ? 1,050 $ 0.34 F Variable Manufacturing Overhead $ 2,100 $ 4,032 ? Standard Cost ? ? $ ? Required: Hint: It may be helpful to complete a general model diagram for direct materials, direct labor, and variable manufacturing overhead before 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 variance? 8. Prepare a standard cost card for one backpack.
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