Marvel Parts, Inc., manufactures auto accessories. One of the company's products is a set of seal. CON- ers that can be adjusted to fit nearly any small car. The company uses a standard cost system 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. The standard costs associated with this level PROBLEM 10-9 Comprehensive Variance Analysis L010-1, L010-2, L010-3 of production are: Total Per Set of Covers $42,560 $51.300 $22.40 27.00 Direct materials Direct labor. Variable manufacturing overhead (based on direct labor-hours) $6,840 3.60 $53.00 During August, the factory worked only 2,800 direct labor-hours and produced 2,000 sets of covers. The following actual costs were recorded during the month: Total Per Set of Covers Direct materials (12,000 yards). Direct labor...... Variable manufacturing overhead $45,600 $49,000 $7,000 $22.80 24.50 3.50 $50.80 At standard, each set of covers should require 5.6 yards of material. All of the materials purchased during the month were used in production 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 rate and efficiency variances. PRORI EM 10 10 Ant