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 or Hours Direct materials ? Standard Price or Rate $ 3.00 per yard Standard Cost $7 Direct labor ? ? 7 Variable manufacturing overhead ? Total standard cost per unit $ 7 $2 per direct labor-hour Overhead is applied to production on the basis of direct labor-hours. During March, 570 backpacks were manufactured and sold. Selected information relating to the month's production is given below: Actual costs incurred Materials price variance Total standard cost allowed. Materials quantity variance Labor rate variance Materials Used $ 8,550. Direct Labor $ 6,384 $ 6,080 ? $ 570 U Variable Manufacturing Overhead $ 1,596 $ 2,812 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 Difference between standard and actual cost per backpack produced during March Required: 855 $ 0.20 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?