Zee Corporation has developed the following cost standards for the production of its leather backpacks: Standard Cost Per Backpack $43.40 Leather (1.4 yards x $31 per yard) $27.20 Direct labor (1.7 hours x $16.00 per hour $35.36 Variable overhead (1.7 hours x $20.80 per hour) Variable overhead at Zee is applied on the basis of direct labor hours. The actual results for last month were as follows: Number of backpacks produced 9,500 15,470 Direct labor hours incurred Yards of leather purchased 14,700 14,200 Yards of leather used in production $435,855 Cost of leather purchased $232,050 Direct labor cost $327,190 Variable overhead cost The direct materials purchases variance is computed when the materials are purchased