Question

only 5,6,7&8 please 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 $6.00 per yard $ 2 per direct labor-hour Standard Cost $ ? Direct materials Direct labor Variable manufacturing overhead Total standard cost per unit Overhead is applied to production on the basis of direct labor-hours. During March, 760 backpacks were manufactured and sold. Selected information relating to the month's production is given below: Materials Used $ 18,240 $17, 125 Direct Labor $15,808 Variable Manufacturing Overhead $2,432 $4,345 $ 2,310 U Total standard cost allowed Actual costs incurred Materials price variance Materials quantity variance Labor rate variance Labor efficiency variance Variable overhead rato variance Variable overhead efficiency variance "For the month's production. The following additional information is available for March's production: ebook References 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 What is the standard direct labor rate per hour? (Round your answer to 2 decimal places.) Standard direct labor rate per hour $ 150 (Recured Required > Materials Used Direct Labor $15,808 $ 18, 240 $ 17, 125 $ 2,310 U 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: , 140 Actual direct labor-hours Difference between standard and actual cost per backpack produced during March $ 0.10 F Required: Hint: it may be helpful to complete a general model diagram for direct materials before attempting to answer any of the requirements.

Answer 1

Computation of Standard cost of a Single Backpack
Standard cost for March Production
Materials	$18,240
Direct Labor	$15,808
Variable Manufacturing Overhead	$2,432
Total Standard Cost	$36,480
Number of Backpacks Produced	760
Standard cost of a single Backpack	$48.00
Solution 2:
Computation of Actual cost per Backpack
Standard cost of a single Backpack	$48.00
Less: Difference Between Standard and actual Cost	$0.10
Actual Cost per Backpack	$47.90
Solution 3:
Computation of Number of yards at standard per Backpack
Total Standard cost of materials allowed during march	$18,240
/Number of Backpacks Produced during march	760
Standard material cost per Backpack	$24.00
/Standard material cost per yard	$6.00
Number of yards per Backpack	4.00

Solution 5:
Computation of standard Direct labor rate per hour
Standard Variable manufacturing overhead cost	$2,432
Standard Variable manufacturing overhead rate per hour	$2
Standard Direct labor hours for March	1216
Standard Direct labor Cost for march	$15,808
Standard direct labor rate per hour	$13.00
Solution 6:
Total actual cost of backpack produced = 760* $47.90 = $36,404
Direct labor cost incurred = $36404 - $17125- $4345 = $14934
Actual direct labor hours = 1140 hours
Actual rate of Direct labor = $14934 / 1140 = $13.10 per hour
Direct labor rate variance = (SR - AR) * AH = ($13 - $13.10) *1140 = $114 U
Direct labor efficiency variance = (SH - AH) * SR = (1216- 1140) * $13 = $988 F
Solution 7:
Actual rate of variable overhead = $4345/1140 = $3.81140 per hour
Variable overhead rate variance = (SR - AR) * AH = ($2 - $3.81140) *1140 = $2065 U
Variable overhead efficiency variance = (SH - AH) * SR = (1216- 1140) * $2 = $152 F

Solution 8:

Standard cost Card - Highland Company
	Standard Quantity or Hours		Standard price or rate		Standard Cost
Direct material	4	yards	$6.00	Per Yard	$24.00
Direct labor (1216/760)	1.6	hours	$13.00	Per DLH	$20.80
Variable overhead	1.6	hours	$2.00	Per DLH	$3.20
Standard cost per unit					$48.00