Highland Company | |||
Part 1 | |||
Standard cost for March prod. | |||
Materials | 19200 | ||
Direct labour | 9200 | ||
Variable Mfg. OH | 1600 | ||
Total Std. cost | 30000 | ||
No. of Backpacks produced | 800 | ||
Std. cost of a single backpack | 37.5 | ||
Part 2 | |||
Standard cost of a single backpack | 37.5 | ||
less:- Difference | -0.15 | ||
Actual cost per backpack | 37.35 | ||
Part 3 | |||
Total Std. cost of materials ( a) | 19200 | ||
No. of Backpacks produced (b) | 800 | ||
Std. Mat. Cost per backpack ( a/b) ( c ) | 24 | ||
Std. Mate. Cost per yard (d) | 6 | ||
NO. of yards per backpack (c/d ) | 4 | ||
Part 4 | |||
MPV ( balancing figure ) ( 3000 + 8100 ) | 11100 | (F) | |
MQV | 3000 | (U) | |
Spending variance ( 19200 - 11100 ) | 8100 | (F) | |
Part 5 | |||
Std. var. Mfg. oH (a) | 1600 | ||
Std. var. Mfg. oH per DLH (b) | 2 | ||
Std. DLH ( a/b) ( c ) | 800 | ||
Std. direct labour cost (d) | 9200 | ||
Std. DL rate per hour (d / c) | 11.5 | ||
Part 6 | |||
LRV (balancing figure ) | 240 | (U) | |
LEV ( Std. hours allowed for actual production - Actual hours) * SR | |||
( 800 - 1200 ) * 11.5 | 4600 | (U) | |
Spending variance ( 9200 - 14040 ) [ for 14040 see working note below ] | 4840 | (U) | |
Working notes | |||
Actual cost for March prod. | |||
Materials | 11100 | ||
Direct labour ( balancing figure ) | 14040 | ||
Variable Mfg. OH | 4740 | ||
Total Actual cost ( 37.35 * 800) | 29880 | ||
No. of Backpacks produced | 800 | ||
Actual cost of a single backpack | 37.35 | ||
Part 7 | |||
VOH rate variance (balancing figure ) | 2340 | (U) | |
VOH efficiency variance:- ( Std. hours allowed for actual production - Actual hours) * SR | |||
( 800 - 1200 ) * 2 | 800 | (U) | |
Spending variance ( 1600 - 4740 ) | 3140 | (U) | |
Part 8 - Standard cost card | Std. qty. or hours | SP or SR | Std. cost |
Direct materials | 4 | 6 | 24 |
Direct labour | 1 DLH | 11.5 | 11.5 |
VOH | 1 DLH | 2 | 2 |
Total standard cost | ( 800 / 800 = 1 ) | 37.5 | |
Problem 10-16 Comprehensive Variance Analysis (LO10-1, LO10-2, LO10-3] Highland Company produces a lightweight backpack...
Problem 10-16 Comprehensive Variance Analysis Lo10-1, LO10-2, LO10-3] 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 $6.00 per yard Direct labor Variable manufacturing overhead Total standard cost per unit per direct labor- $2 hour S ? Overhead is applied to production on the basis of direct labor-hours. During March, 520 backpacks were manufactured...
Problem 10-16 (Algo) Comprehensive Variance Analysis [LO10-1, LO10-2, LO10-3] Highland Company produces a lightweight backpack that is popular with college students. Standard varlable costs relating to a single backpack are given below: Standard Quantity Standard Price Standard or Hours or Rate Cost $4.00 per yard Direct materials Direct labor per direct 2 labor-hour Variable manufacturing overhead Total standard cost per unit Overhead is applied to production on the basis of direct labor-hours. During March, 700 backpacks were manufactured and sold....
Problem 10-16 (Algo) Comprehensive Variance Analysis (L010-1, LO10-2, LO10-3) 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 $6.00 per yard $? Direct materials Direct labor Variable manufacturing overhead Total standard cost per unit $ per direct 2 labor-hour Overhead is applied to production on the basis of direct labor-hours. During March, 400 backpacks were manufactured...
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 HoursStandard Price or RateStandard CostDirect materials?$6.00 per yard$?Direct labor???Variable manufacturing overhead?$2 per direct labor-hour?Total standard cost$?Overhead is applied to production on the basis of direct labor-hours. During March, 530 backpacks were manufactured and sold. Selected information relating to the month's production is given below: Materials UsedDirect LaborVariable Manufacturing OverheadTotal standard cost allowed ^(**)$15,900$7,420$1,484Actual costs incurred$13,750?$1,708Materials price variance?Materials...
I only need 4, 6, 7, & 8 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 Standard Cost $ ? Direct materials Direct labor Variable manufacturing overhead Total standard cost per unit $ 2 per direct labor-hour $? Overhead is applied to production on the basis of direct labor-hours. During March, 530 backpacks were...
Highland Company produces a lightweight backpack that is popular with college students. Standard variable costs relating to a single backpack are given below Standard Price or Rato standard Cost standard Quantity or Hours Direct materials Direct labor $4.58 per yard per direct labor Variable manufacturing overhead Total standard cost per unit $2 hour Overhesd is applied to production on the basis of direct labor-hours. During March, 530 backpscks were manufactured and sold Selected information relating to the month's production is...
Highland Company produces a lightweight backpack that is popular with college students. Standard variable costs relating to a single backpack are given below: Standard Qtity Standard Price Standard or Rate $4.00 per yard or Hours Cost S? Direct materials Direct labor Variable manufacturing overhead $2 per direct labor-hour Total standard cost Overhead is applied to production on the basis of direct labor-hours. During March, 490 backpacks were manufactured and sold. Selected information relating to the month's production is given below:...
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 Standard Price Standard or Rate Direct materials Direct labor $6.00 per yard per direct labor. Variable manufacturing overhead Total standard cost per unit Overhead is applied to production on the basis of direct labor-hours. During March, 520 backpacks were manufactured and sold. Selected information relating to the month's production is given below. Materials Direct Labor...
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 ? $ 4.00 per yard $ ? Direct labor ? ? ? Variable manufacturing overhead ? $ 2 per direct labor-hour ? Total standard cost per unit $ ? Overhead is applied to production on the basis of direct labor-hours. During March, 700 backpacks were...
Highland Company produces a lightweight backpack that is popular with college students. Standard variable costs relating to a single backpack are given below: Standard Quantityor HoursStandard Priceor RateStandardCostDirect materials?$6per yard$?Direct labor???Variable manufacturing overhead?$3per direct labor-hour?Total standard cost per unit$? Overhead is applied to production on the basis of direct labor-hours. During March, 1,000 backpacks were manufactured and sold. Selected information relating to the month’s production is given below: MaterialsUsedDirect LaborVariableManufacturingOverheadTotal standard cost allowed*$16,800$21,000$4,200Actual costs incurred$15,000?$3,600Materials price variance?Materials quantity variance$1,200ULabor rate variance?Labor efficiency variance?Variable...