Problem 10-16 Comprehensive Variance Analysis LO10-1, LO10-2, LO10-3] 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 Standard Price Standard or Hours or Rate Cost Direct materials $4.70 per yard Direct labor Variable manufacturing overhead $2 per direct labor-hour Total standard cost Overhead is applied to production on the basis of direct labor-hours. During March, 700 backpacks were manufactured and sold. Selected information relating to the month's production is given below: Variable Manufacturing Materials Used Direct Labor Overhead $13,160 $10,500 Total standard cost allowed $2,100 $2,470 Actual costs incurred $10,730 Materials price variance 470 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 1.220 $2.00 Standard overhead rate per direct labor-hour Difference between standard and actual cost per backpack produced during March $0.34 F