Marvel Parts Inc. manufactures auto accessories. lEllr'le of the oompany's products is a set of seat covers that can be adjusted to t 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 1.055 hours each month to produce 2,110 sets of covers. The standard costs associated with this level of production are as follows: For Set. Total of Cover! Direct. materials $ 51,273 $24.30 Direct. labour $ 10,550 5.00 Variable manufacturing overhead (based on direct labour-hours} $ 4 , 553 2 . 30 3 3 1 . 50 During August. the factory worked only 1,000 direct labour-hours and produced 2,100 sets of covers. The following actual costs were recorded during the month: Per Set: Total of Cover: Direct. materials {6,300 yards) $ 49,980 $23.30 Direct. labour $ 10,920 5.20 Variable manufacturing overhead $ 5 , d. 60 2 . 50 $ 3 1 . 50 At standard, each set of covers should require 3.00 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. (Input all amounts as positive values. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e, zero variance).) Materials price variance Materials quantity variance2. Compute the labour rate and efficiency variances for August. (Input all amounts as positive values. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e, zero variance).) Labour rate variance Labour efficiency variance3. Compute the variable overhead rate and efficiency variances for August. (Input all amounts as positive values. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e, zero variance).) Variable overhead rate variance Variable overhead efficiency variance4. This part 4 is to be answered in the next question. Assume the plant manager is responsible for pricing, setting wage rates and control of overhead costs while the production supervisor is responsible for production efficiency. Should either of them be paid a bonus for their results? Explain why. (Note that your explanation is worth 3 marks while parts 1, 2, and 3 are worth 12 marks in total.)