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 $1,055$ hours each month to produce $2,110$ sets of covers. The standard costs associated with this level of production are:

Total Per Set

of Covers

Direct materials $ $51,273$ $ $24\mathrm{.}30$

Direct labor $ $10,5505\mathrm{.}00$

Variable manufacturing overhead $($based on direct labor$-$hours$)$ $ $4,8532\mathrm{.}30$

$ $31\mathrm{.}60$

$\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

During August, the factory worked only $1,000$ direct labor$-$hours and produced $2,100$ sets of covers. The following actual costs were recorded during the month:

Total Per Set

of Covers

Direct materials $(6,800$ yards$)$ $ $49,980$ $ $23\mathrm{.}80$

Direct labor $ $10,9205\mathrm{.}20$

Variable manufacturing overhead $ $5,4602\mathrm{.}60$

$ $31\mathrm{.}60$

$\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

At standard, each set of covers should require $3\mathrm{.}0$ 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 $($i$.$e$.,$ zero variance$).$ 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