Managerial Accounting: P8-16A Celtron Inc. produces a lightweight backpack that is popular

Managerial Accounting 
PROBLEM 8-16A Comprehensive Variance Analysis 
Celtron Inc. 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 Standard Cost 
Direct materials ? $6.50 per yard ? 
Direct labor ? ? ? 
Variable manufacturing overhead ? $2.80 per DLH ? 
Total standard cost $ ? 

Overhead is applied to production on the basis of direct labor-hours. During September, 1,000 backpacks were manufactured and sold. Selected information relating to the month’s production is given below: 
                             Materials Used Direct Labor Variable Manufacturing Overhead 
Total standard cost allowed*   $17,550 $12,000 $4,200 
Actual costs incurred  $14,700 ? $3,500 
Direct materials price variance  ? 
Direct materials quantity variance  $650 U 
Direct labor rate variance ? 
Direct labor efficiency variance ? 
Variable overhead rate variance ? 
Variable overhead efficiency variance ? 
*For the month's production. 

The following additional information is available for September’s production: 
Actual direct labor-hours 1,600 
Difference between standard and actual cost per backpack produced during March $2.15 
There were no beginning or ending inventories of raw materials. 

1. What is the standard cost of a single backpack? 
2. What was the actual cost per backpack produced during September? 
3. How many yards of material are required at standard per backpack? 
4. What was the materials price variance for September? 
5. What is the standard direct labor rate per hour? 
6. What was the labor rate variance for September? The labor efficiency variance? 
7. What was the variable overhead spending variance for September? The variable overhead efficiency variance? 
8. Prepare a standard cost card for one backpack.
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