Compute the labor rate and efficiency variances for August.

The company manufactures auto seat covers and 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 1,230 hours each month to produce 2,050 sets of covers. The standard costs associated with this level of production are: Total Per Set of Covers Direct materials $ 27,675 $13.50 Direct labor $ 8,610 4.20 ariable manufacturing overhead (based on direct labor-hours) $ 4,920 2.40 $ 20.10 During August, the factory worked only 750 direct labor-hours and produced 1,500 sets of covers. The following actual costs were recorded during the month: Total Per Set of Covers Direct materials (3,900 yards) $ 19,500 $ 13.00 Direct labor $ 6,600 4.40 Variable manufacturing overhead $4,800 3.20 $ 20.60 At standard, each set of covers should require 1.8 yards of material. All of the materials purchased during the month were used in production