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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

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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 Standard Price or Rate $3.00 per yard ? per direct labor $ 2 hour Standard Cost $? ? Direct materials Direct labor ? Variable manufacturing overhead Total standard cost per unit $? 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: Variable Materials Direct Manufacturing Used Labor Overhead Total standard cost allowed $ 8,55e $6,384 $1,596 Actual costs incurred $6,880 $2,812 Materials price variance Materials quantity variance $ 570 u Labor rate variance Labor efficiency variance Variable overhead rate variance

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