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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 Rato Cost Direct materials 2 $500 per yard $2 Direct labor 2 2 Variable manufacturing overhead 2 $2 per direct 2 labor hour Total standard cost $2 Overhead is applied to production on the basis of direct labor-hours. During March 790 backpacks were manufactured and sold Selected information relating to the month's production is given below Variable Manufacturing Materials Used Direct Labor Overhead Total standard cost allowed $15,800 $13,272 $2,528 Actual costs incurred $13,120 $3.421 Materials price variance Materials quantity variance $ 600. U Labor rate variance Labor efficiency variance Variable overhead rate variance Variable overhead efficiency variance 3 *For the month's production The following additional information is available for March's production 2 2 2 Actual direct labor-hours Difference between standard and actual cost per backpack produced during March 1,400 $0.10 F Required: 1. What is the standard cost of a single backpack? 5. What is the standard direct labor rate per hour? Standard variable manufacturing overhead cost for March Standard variable manufacturing overhead rate per direct labor- hour Standard direct labor-hours for March Standard direct labor cost for March Standard direct labor rate per hour 6. What was the labor rate variance for March? The labor efficiency variance? (Do not round your intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.o., zero variance)) Labor rate variance Labor efficiency variance

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