ROBLEM 8-16A Comprehensive Variance PROBLEM
(LO1, LO2, LO3, LO4) CHECK FIGURE (1) Standard cost: $33.75 (3) 2.70 yards per
backpack 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 direct-labor hour ? 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 for the month’s production
$17,550 $12,000 $4,200 Actual costs incurred $14,700 ? $3,500 Materials price
variance ? Materials quantity variance $650 U Labor rate variance ? Labor
efficiency variance ? Variable overhead spending variance ? Variable overhead
efficiency variance ? 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 September $2.15 F There
were no beginning or ending inventories of raw materials. Required: 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.