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 ? $6.00 per yard 5 ? Direct labor ? 2 ? per direct Variable manufacturing overhead ? $ 2 labor-hour ? Total standard cost per unit $ ? Overhead is applied to production on the basis of direct labor-hours. During March, 400 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* $ 9,120 $5,040 $ 960 Actual costs incurred $ 5,520 ? $2,620 Materials price variance ? Materials quantity variance 5 1,920 U Labor rate variance Labor efficiency variance Variable overhead rate variance Variable overhead efficiency variance '0 In '9 '0 I *For the month's production. The following additional information is available for March's production: Actual direct labor-hours 600 Difference between standard and actual cost per backpack produced during March ' 5 0.20F