Highland Company produces a lightweight backpack that is popular with college students. Standard variable costs relating
Posted: Sun Jul 03, 2022 3:52 pm
Highland Company produces a lightweight backpack that is popularwith college students. Standard variable costs relating to a singlebackpack are given below:
Overhead is applied to production on the basis of directlabor-hours. During March, 700 backpacks were manufactured andsold. Selected information relating to the month’s production isgiven below:
*For the month's production.
The following additional information is available for March’sproduction:
Required:
(Hint: It may be helpful to complete a generalmodel diagram for direct materials, direct labor, and variablemanufacturing overhead before attempting to answer any of therequirements.)
1. What is the standard cost of a single backpack?
2. What was the actual cost per backpack produced duringMarch?
3. How many yards of material are required at standard perbackpack?
4. What was the materials price variance for March if there wereno 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 laborefficiency variance?
7. What was the variable overhead rate variance for March? Thevariable overhead efficiency variance?
8. Prepare a standard cost card for one backpack.
Overhead is applied to production on the basis of directlabor-hours. During March, 700 backpacks were manufactured andsold. Selected information relating to the month’s production isgiven below:
*For the month's production.
The following additional information is available for March’sproduction:
Required:
(Hint: It may be helpful to complete a generalmodel diagram for direct materials, direct labor, and variablemanufacturing overhead before attempting to answer any of therequirements.)
1. What is the standard cost of a single backpack?
2. What was the actual cost per backpack produced duringMarch?
3. How many yards of material are required at standard perbackpack?
4. What was the materials price variance for March if there wereno 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 laborefficiency variance?
7. What was the variable overhead rate variance for March? Thevariable overhead efficiency variance?
8. Prepare a standard cost card for one backpack.