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 980 hours each month to produce 1,960 sets of covers. The standard costs associated with this level of production are: Per Set Total of Covers Direct materials $ 32 , 340 $16.50 Direct labor $ 6, 860 3.50 Variable manufacturing overhead (based on direct labor-hours) $ 1,960 1. 00 $21. 00 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: Per Set Total of Covers Direct materials (6,000 yards) $ 34 , 020 $16.20 Direct labor $ 7, 770 3. 70 Variable manufacturing overhead $ 3,990 1.90 $21. 80 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 (i.e., zero variance). Input all amounts as positive values.) . Materials price variance Materials quantity variance . Labor rate variance Labor efficiency variance 3. Variable overhead rate variance Variable overhead efficiency varianceKoontz Company manufactures a number of products. The standards relating to one of these products are shown below, along with actual cost data for May. Standard Actual Cost per Cost per Unit Unit Direct materials: Standard: 1.80 feet at $2.80 per foot $ 5.04 Actual: 1.75 feet at $3.00 per foot $ 5.25 Direct labor: Standard: 0.90 hours at $17.00 per hour 15 .30 Actual: 0.95 hours at $16.40 per hour 15.58 Variable overhead: Standard: 0.90 hours at $7.40 per hour 6. 66 Actual: 0.95 hours at $7.00 per hour 6.65 Total cost per unit $27 .00 $27 . 48 Excess of actual cost over standard cost per unit $0 . 48 The production superintendent was pleased when he saw this report and commented: "This $0.48 excess cost is well within the 5 percent limit management has set for acceptable variances. It's obvious that there's not much to worry about with this product." Actual production for the month was 14,500 units. Variable overhead cost is assigned to products on the basis of direct labor-hours. There were no beginning or ending inventories of materials. Required: 1. Compute the following variances for May: a. Materials price and quantity variances. b. Labor rate and efficiency variances c. Variable overhead rate and efficiency variances. 2. How much of the $0.48 excess unit cost is traceable to each of the variances computed in (1) above. 3. How much of the $0.48 excess unit cost is traceable to apparent inefficient use of labor time? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 1a. Compute the following variances for May, materials price and quantity variances. 1b. Compute the following variances for May, labor rate and efficiency variances. 1c. Compute the following variances for May, variable overhead rate and efficiency variances. (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.) Show less 1a. Materials price variance Materials quantity variance 1b. Labor rate variance Labor efficiency variance 1c. Variable overhead rate variance Variable overhead efficiency variance