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arvel Parts, Incorporated, manufactures auto accessories. One of the company's products is a set of seat covers that can be adjusted fit nearly any small
arvel Parts, Incorporated, manufactures auto accessories. One of the company's products is a set of seat covers that can be adjusted 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 een set for the seat covers, the factory should work 1,000 hours each month to produce 2,000 sets of covers. The standard costs ssociated with this level of production are: Total Direct materials $ 41,400 $ 8,000 Variable manufacturing overhead (based $ 3,400 Direct labor on direct labor-hours) Per Set of Covers $ 20.70 4.00 1.70 $ 26.40 During August, the factory worked only 1,050 direct labor-hours and produced 2,400 sets of covers. The following actual costs were recorded during the month: Total Direct materials (7,500 yards) Direct labor $ 48,000 Per Set of Covers $ 20.00 $ 10,080 $ 5,040 4.20 2.10 Variable manufacturing overhead $ 26.30 At standard, each set of covers should require 3.0 yards of material. All of the materials purchased during the month were used in production. Prev 1 of 1 Next ces At standard, each set of covers should require 3.0 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 (.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 Next
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