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Marvel Parts, Inc., manufactures auto accessories. One of the company's products is a set of seat covers that can be adjusted to nearly any small

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Marvel Parts, Inc., manufactures auto accessories. One of the company's products is a set of seat covers that can be adjusted to nearly any small cat. 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 1020 hours each month to produce 2010 sets of covers the standard costs associated with this level of production are Net Total of covers Direct materials $17,740 $13.50 Direct labor 19.10 4.50 Variable manufacturing overhead (based on trect labor hours) $ 2,441 1:20 524.90 During August, the factory worked only 1000 direct labor hours and produced 2,000 wts of covers. The following actual costs were recorded during the month Direct materials (0.200 yards) Direct labor Variable sanufacturing overhead Per Set Total of covers 52.780 $18.20 5 15.630 4.70 14,640 1.60 At standard, each set of covers should require 25 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 effectie, zero variances. Input all amounts as positive values.) At standard, each set of covers should require 2.5 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 ie, 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

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