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 Standard Cost $ 4.00 per yard $ ? ? ? $2 per direct labor-hour ? $ ? Overhead is applied to production on the basis of direct labor-hours. During March, 420 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 Labor rate variance Materials quantity variance Labor efficiency variance Variable overhead rate variance Direct Variable Manufacturing Materials Used Labor Overhead $ 6,720 $ 4,368 $ 1,092 $ 5,355 ? $ 1,407 ? $ 420 U ? ? ? 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 630 $ 0.15 F