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 Hours or Rate Direct materials $4.00 per yard Direct labor Variable manufacturing overhead $2 per direct 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: Variable Manufacturing Direct Labor Materials Used $5,586 Total standard cost allowed" $8,820 $1,176 $1,249 Actual costs incurred $7,035 Materials price variance 560 U 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: Actual direct labor-hours 750 Standard overhead rate per direct labor-hour $2.00 Difference between standard and actual cost per $0.20 F backpack produced during March