uiceS. PROBLEM 10-16 Comprehensive Variance Analysis [L010-1,L010-2, L010-3] Highland Company produces a lightweight backpack that is popular with college students. 2 Standard variable costs relating to a single backpack are given below: 0 Standard Quantity Standard Price Standard or Hours or Rate $6 per yard $3 per direct labor-hour Cost Direct materials Direct labor Variable manufacturing overhead. ? 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 Overhead $3,600 Materials Direct Manufacturing Used Labor 0 Materials price variance... 2 $1,200 U 2 Labor rate variance. Labor efficiency variance .. . Variable overhead rate variance . . . . . .. . . . . . . .. Variable overhead efficiency variance . . . 2 *For the month's production