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: Direct materials Direct labor Variable manufacturing overhead Total standard cost per unit Standard Quantity or Hours Standard Price or Rate Standard Cost $5.00 per yard $2 ? per direct labor- $ 2 hour 2 $? Overhead is applied to production on the basis of direct labor-hours. During March, 440 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 Labor efficiency variance Variable overhead rate variance Varlable overhead efficiency variance Materials Used Direct Variable Manufacturing Labor Overhead $ 9,400 $6,460 $1,232 $ 8,272 $1,738 $ 888 U