1 12.5 points Marvel Parts, Incorporated, manufactures auto accessories. One of the company's products is a set of seat covers that can be adjusted to fit nearly any small car. The company has a standard cost system in use for all of its products. According to the standards that have been set for the seat covers, the factory should work 1,030 hours each month to produce 2,060 sets of covers. The standard costs associated with this level of production are: Total Per Set of Covers Direct materials $ 39,140 Direct labor $ 9,270 $ 19.00 4.50 eBook Variable manufacturing overhead (based on direct labor-hours) $ 3,502 1.70 $ 25.20 Hint During August, the factory worked only 640 direct labor-hours and produced 1,600 sets of covers. The following actual costs were recorded during the month: Print Total Per Set of Covers Direct materials (5,500 yards) Direct labor $ 29,920 References Variable manufacturing overhead $ 7,520 $ 4,000 $ 18.70 4.70 2.50 $ 25.90 At standard, each set of covers should require 2.5 yards of material. All of the materials purchased during the month were used in production. Required: 1. Compute the materials price and quantity variances for August. 2. Compute the labor rate and efficiency variances for August. 3. Compute the variable overhead rate and efficiency variances for August. Note: Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. 1. Materials price variance 1. Materials quantity variance 2. Labor rate variance