33 Marvel Parts, Incorporated manufactures auto accessories One of the company's products in a set of seat covers that can be to ft nearly any small car The company has a standard cost system in use for al of es products According to the been set for the seat covers, the factory should work 1035 hours each month to produce 2070 sets of covers The associated with this level of production are Direct labor During August, the factory worked only 500 direct labor hours and produced 1700 ots of covers The long actual recorded during the month Direct labor At standard, each set of covers should requre 2.0 yards of material. All of the materials purchased during the moth were used e production Required 1. Compute the materials price and quantity variances for August 2. Compute the labor rate and efficiency vanances for August 3. Compute the variable overhead rate and efficiency variances for August (Indicate the effect of each verience by selecting "F" for fevorable, "U" for unfavorable, and "None" for to affect o variance). Input all amounts as positive values) 1. Materials quantity variance 2 Lab rate variance 2. Labor efficiency variance 3 Variable overhead cateva Seve D direct labor-hours) $4,347 $ 20.50 During August, the factory worked only 500 direct labor-hours and produc ecorded during the month Direct materials (5,000 yards) Direct labor Variable manufacturing overhead Total $ 25,500 Per Set of Covers $ 15.00 $ 5,440 3.20 $ 4,080 2.40 $ 20.60 At standard, each set of covers should require 2.0 yards of material. All of t 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 (Indicate the effect of each variance by selecting "F" for favorable, "U" for variance). Input all amounts as positive values.) 1. Materiais price variance 1. Materials quantity variance 2 Labor rate variance 2. Labor efficiency variance 3 Varlable overhead rate variance 3. Variable overhead efficiency variance ch T 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 1,035 hours each month to produce 2,070 sets of covers The standard costs associated with this level of production are Per Set of Total Covers Direct materials $31,878 $15.40 Direct labor 56.210 3.00 Variable manufacturing overhead (based on direct labor-hours) $4,347 2.10 $20.50 During August, the factory worked only 500 direct labor-hours and produced 1,700 sets of covers. The following actual costs were recorded during the month: Direct materials (5,000 yards) Direct labor Variable manufacturing overhead Total $ 25,500 Per Set of Covers $ 5,440 $4,000 $ 15.00 3.20 2.40 $20.60 At standard, each set of covers should require 2.0 yards of material. All of the materials purchased during the month were used in production. Total Direct materials (5,000 yards) Direct labor $ 25,500 PE Set DT Covers $ 15.00 $ 5,440 17 $ 4,080 3.20 2.40 $ 20.60 Variable manufacturing overhead At standard, each set of covers should require 2.0 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 (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 2. Labor efficiency variance 3. Variable overhead rate variance 3. Variable overhead efficiency variance U D IF U F