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 $ 6.00 per yard Standard Cost $7 ? ? 7 $7 $2 per direct labor-hour Overhead is applied to production on the basis of direct labor-hours. During March, 520 backpacks were manufactured and sold. Selected information relating to the month's production is given below: Total standard cost allowed Actual costs incurred. Materials price variance Materials quantity variance Labor rate variance Materials Used $ 15,600 $14,325 Direct Labor $ 7,280 Variable Manufacturing Overhead $1,456 7 $1,717 17 $ 1,590 U 7 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 780 $ 0.20 F Prev 5 of 5 Next