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4 nearly any small cat. The company has a standard cost system in use for all of its products. According to the standards that have

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4 nearly any small cat. 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 t015 hours each month to produce 2.030 sets of covers. The standard costs associated with this level of production are 10 Direct materials Direct labor Variable manufacturing overhead (based on direct labor-hours) Per Set Total of Covers $ 39,276 $29.20 $8,120 $ 3,857 1.se $35.10 Pret tercer During August, the factory worked only 700 direct labor-hours and produced 1.500 sets of covers. The following actual costs were recorded during the month Direct materials (8,400 yards) Direct labor Variable manufacturing overhead Per Set Total of Covers $ 42,000 $28.00 $ 6,300 4.20 $3,150 2.10 $34.30 At standard, each set of covers should require 4.0 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 (le, zero variance). Input all amounts as positive values.) Mc Graw Hill o

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