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 1,010 hours each month to produce 2,020 sets of covers. The standard costs associated with this level of production are as follows: Direct materials Direct labour Variable manufacturing overhead (based on direct labour-hours) Total $36,360 $ 7,070 Per Set of Covers $ 18.00 3.50 $ 3,030 1.50 $ 23.00 During August, the factory worked only 1.080 direct labour-hours and produced 2,700 sets of covers. The following actual costs were recorded during the month: Total $ 46, R80 Direct materials (8,100 yards) Direct labour Variable manufacturing overhead Per Set of Covers $ 17.40 3.70 1.70 $ 9,90 4,590 $ Prev 1 of 1 Next Direct materials Direct labour Variable manufacturing overhead (based on direct labour-hours) Totol $ 36,360 7,070 of Covers $ 18.00 3.50 $ 3,030 1.50 $ 23.00 During August, the factory worked only 1,080 direct labour-hours and produced 2.700 sets of covers. The following actual costs were recorded during the month: Direct materials (8,100 yards) Direct labour Variable manufacturing overhead Total $ 46,980 9,990 $ 4,590 Per Set of Covers $17.40 3.70 1.70 $ 22.80 At standard, each set of covers should require 2.00 yards of material. All of the materials purchased during the month were used in production maprindex.html?_con-con&external_browser-OlaunchUrlhttps%253A%252F%252Fnewconne... tem Bonus 20 Help Sa P. At standard, each set of covers should require 200 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 (ie, zero variance).) 20 Doints eBook Print References 2. Compute the labour rate and efficiency variances for August. (Input all amounts as positive values. Indicate to variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (ie, zero variance)) Help Save 3. Compute the variable overhead rate and efficiency variances for August. (Input all amounts as positive values. Indicate the effec of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (ie, zero variance).)
