Chapter 10 Homework 1 12.5 points Marvel Parts, Inc., 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 1.005 hours each month to produce 2010 sets of covers. The standard costs associated with this level of production are: Direct materials Total $ 28,542 Per Set of Covers $14.20 Direct labor $ 8,040 4.00 eBook Variable manufacturing overhead (based on direct labor-hours) $ 3,618 1.80 $20.00 Hint During August, the factory worked only 1,200 direct labor-hours and produced 2,600 sets of covers. The following actual costs were recorded during the month: Print References Per Set Total Direct materials (6,000 yards) Direct labor $ 35,100 $ 10,920 Variable manufacturing overhead $ 5,460 of Covers $13.50 4.20 2.10 $19.80 At standard, each set of covers should require 20 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 varlance). Input all amounts as positive values.) 1. Materials price variance Materials quantity variance 2. Labor rate variance Labor efficiency variance 3. Variable overhead rate variance Variable overhead efficiency variance