Highland Company produces a lightweight backpack that is popular with college students. Standard variable costs relating to a single backpack are given below: Standard Standard Price or Hours or Rate Cost $6.00 per yard Direct materials 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, 770 backpacks were manufactured and sold. Selected information relating to the month's production is given below Variable Manufacturing Materials Used Direct Labor Overhead $18,480 $16,016 Total standard cost allowed $2,464 Actual costs incurred $16,000 $3,460 Materials price variance 720 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 1,330 Standard overhead rate per direct labor-hour $2.00 Difference between standard and actual cost per backpack produced during March $0.10 F