Highland Company produces a lightweight backpack that is popular with college students. Standard d variable costs relating to a single backpack are given below: Standard Quantity Standard Price Standard or Hours or Rate Cost Direct materials $4.70 per yard Direct labor $2 per direct Variable manufacturing overhead labor-hour Total standard cost 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 Overhead Materials Used Direct Labor $13,160 $10,500 $2,100 Total standard cost allowed $10,730 $2,470 Actual costs incurred Materials price variance 470 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 1,220 Standard overhead rate per direct labor-hour $2.00 Difference between standard and actual cost per backpack produced during March $0.34 F