2 Highland Company produces a lightweight backpack that is popular with college students. Standard variable costs relating to a single backpack are given below: Direct materials Direct labor Variable manufacturing overhead Total standard cost per unit Standard Quantity or Hours ? Standard Price or Rate $ 4.00 per yard Standard Cost $ 7 ? ? 7 $2 per direct labor-hour ? $ 7 Overhead is applied to production on the basis of direct labor-hours. During March, 700 backpacks were manufactured and sold. Selected information relating to the month's production is given below: Variable Manufacturing Total standard cost allowed* Actual costs incurred Materials price variance Labor rate variance Materials quantity variance Labor efficiency variance Variable overhead rate variance Materials Used $ 11,200 Direct Labor $ 10,500 Overhead $ 2,100 $ 8,925 ? $ 4,032 ? $ 700 U 7 ? ? ? Variable overhead efficiency variance *For the month's production. The following additional information is available for March's production: Actual direct labor-hours Difference between standard and actual cost per backpack produced during March Required: 1,050 $ 0.34 F Hint: It may be helpful to complete a general model diagram for direct materials, direct labor, and variable manufacturing overhead before attempting to answer any of the requirements. 1. What is the standard cost of a single backpack? 2. What was the actual cost per backpack produced during March? 3. How many yards of material are required at standard per backpack? 4 What was the materials price variance for March if there were no heninning or ending inventories of materials?