Managerial Accounting: P10-26 Highland Company produces a lightweight backpack

Managerial Accounting 
PROBLEM 10-26 Comprehensive Variance Analysis 
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 Standard Cost 
Direct materials ? $5.10 per yard ? 
Direct labor ? ? ? 
Variable manufacturing overhead ? $3 per DLH ? 
Total standard cost $ ? 

Overhead is applied to production on the basis of direct labor-hours. During March, 1,100 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*   $16,800 $10,500 $4,200 
Actual costs incurred  $15,000 ? $3,600 
Direct materials price variance  ? 
Direct materials quantity variance  $1,200 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 March's production: 
Actual direct labor-hours 1,500 
Standard overhead rate per direct labor-hour $3.00 
Standard price of one yard of materials $6.00 
Difference between standard and actual cost per backpack produced during March $0.15 F 

Required: 
1. What is the standard cost of a single backpack? (Round your answer to 2 decimal places. Omit the "$" sign in your response.) 
2. What was the actual cost per backpack produced during March? (Round your answer to 2 decimal places. Omit the "$" sign in your response.) 
3. How many yards of material are required at standard per backpack? (Round your answer to 2 decimal places.) 
4. 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 "$" sign in your response.) 
5. What is the standard direct labor rate per hour? (Round your answer to 2 decimal places. Omit the "$" sign in your response.) 
6. 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 "$" sign in your response.) 
7. What was the variable overhead rate variance for March? The variable overhead efficiency variance? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Omit the "$" sign in your response.) 
8. Prepare a standard cost card for one backpack. (Round your answers to 2 decimal places. Omit the "$" sign in your response.)
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