Data P10-3 Part II:
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
2,850 hours each month to produce 1,900 sets of covers.
MARVEL PARTS, INC.
Direct labor-hours per month	2,850
Seat covers produced	1,900
Standard costs:		Per Unit
	Total	of Product
Direct materials	$42,560	$22.40
Direct labor	$17,100	9.00
Variable manufacturing overhead	$6,840	3.60
		$35.00
Actual August production:
Direct labor-hours for month	2,800
Seat covers produced	2,000
Actual costs during August:		Per Unit
	Total	of Product
Direct materials	$45,600	$22.80
Direct labor	$18,200	9.10
Variable manufacturing overhead	$7,000	3.50
		$35.40
All of the materials purchased during the month were used in production.
Actual Yards of material used in August	12,000
Standard material requirement per cover	5.6	Yards
Required:
Compute the following variances for August:
1. The materials price and quantity variances.
2. The labor rate and efficiency variances.
3. The variable overhead spending and efficiency variances.