Problem 10-16 Comprehensive Variance Analysis [LO10-1, L010-2, 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 Direct labor Variable manufacturing overhead Total standard cost per unit $5.60 per yard per direct $2 labor-hour Overhead is applied to production on the basis of direct labor-hours. During March, 1,000 backpacks were manufactured and sold. Selected information relating to the month's production is given below: Variable Materials Used $22,400 18,952 Manufacturing Direct Labor $11,500 Overhead $2,000 $ 184 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 $ 672U 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 1,420 0.15 F backpack produced during March