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 or Hours Standard Price or Rate Standard Cost Direct materials $6.00 per yard Direct labor Variable manufacturing overhead Total standard cost per unit per direct labor- $2 hour S ? Overhead is applied to production on the basis of direct labor-hours. During March, 520 backpacks were manufactured and sold Selected information relating to the month's production is given below Variable Materials Used 15,600 $ 14,325 Direct Manufacturing Labor $7,280 Overhead $1,456 $1,717 Total standard cost allowed* Actual costs incurred Materials price variance Materials quantity variance Labor rate variance Labor efficiency variance Variable overhead rate variance Variable overhead efficiency variance $1,590 U For the month's production. The following additional information is available for March's production: Actual direct labor-hours Difference between standard and actual cost per backpack 780 $ 0.20 F produced during March What is the standard direct labor rate per hour? What was the labor rate variance for March? The labor efficiency variance? What was the variable overhead rate variance for March? The variable overhead efficiency variance? Prepare a standard cost card for one backpack