5.5Marvel Parts Inc. manufactures auto accessories. One of the company's products is a set of seat covers that can be adjusted to fitnearly any small car. The company has a standard cost system in use for all of its products. According to the standards that have beenset for the seat covers, the factory should work 2,850 hours each month to produce 1,900 sets of covers. The standard costsassociated with this level of production are as follows:Direct materialsDirect labour.Variable manufacturing overhead (based on direct labour-hours)During August, the factory worked only 2,800 direct labour-hours and produced 2,000 sets of covers. The following actual costs wererecorded during the month:Direct materials (12,000 yards)Direct labourVariable manufacturing overhead.$Total45,60018,200$$ 7,000Per SetTotal of Covers$42,560 $22.40$17,100 9.00$6,8403.60$35.00Per Setof Covers$22.809.103.50$35.404At standard, each set of covers should require 5.6 yards of material. All of the materials purchased during the month were used inproduction.Required:1. Compute the materials price and quantity variances for August. (Input all amounts as positive values. Indicate the effect of eachvariance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e, zero variance).)m