7 48 oints 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 uses a standard cost system for all of its products, According to the standards that have been set for the seat covers, the factory should work 1,060 hours each month to produce 2.120 sets of covers. The standard costs associated with this level of production are: Direct materials Direct labor eBook Variable manufacturing overhead (based on direct labor-hours) Total 143,460 $ 9,540 Per Set of Covers $20,50 4.50 $4,604 2.20 $ 27,20 Ask During August, the factory worked only 500 direct labor-hours and produced 2,200 sets of covers. The following actual costs were recorded during the month Pri Direct materials (8,000 yards) Direct labor References Varlable manufacturing overhead Total $44,000 $10,340 Per Set of Covers $ 20.00 4.70 $ 5,500 2,50 $27.20 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 (Indicate the effect of each variance by selecting "F" for favorable. "U" for unfavorable, and "None" for no effect (ie., zero variance). Input all amounts as positive values.) 1. Materials price variance 1 Materials quantity variance 2 Labor rate variance 2 Labor efficiency variance Variable overhead rate variance 3. Variable overhead efficiency variance