Highland Company produces a lightweight backpack that is popular with college students. Standard variable costs relating to a single backpack are given below: Standard Cost Standard QuantityStandard Price or Hours or Rate $4.50 per yard Direct materials Direct labor Variable manufacturing overhead $2 per direct Total standard cost S? Overhead is applied to production on the basis of direct labor- hours. During March, 525 backpacks were manufactured and sold Selected information relating to the month's production is given below Materials Used Direct Labor $5,880 $9.450 $7,700 $1.470 $1,615 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 $ 450 U For the month's production The following additional information is available for March's production Actual direct labor-hours Standard overhead rate per direct labor-hour Difference between standard and actual cost per 900 $2.00 $0.20 F backpack produced during March