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 it's products. According to the standards that have been set for the seat covers, the factory should work 995 hours each month to produce 1,990 sets of covers. The standard costs associated with this level of production are:

Direct materials: Total Per Set of Covers

$47,362 $23.80

Direct labor: Total Per Set of Covers

$ 8,955 4.50

Variable manufacturing overhead (based on direct labor-hours):

Total: 2,388 Per Set of Covers: 1.20

When the Per Set of Covers section is added together for all the three standard costs, it becomes $29.50

During August, the factory worked only 1,000 direct labor-hours and produced 2,300 sets of covers. The following actual costs were recorded during the month:

Direct materials (8,800 yards): Total Per Set of Covers

$50,600 $22.00

Direct labor: Total Per Set of Covers

$10,580 4.60

Variable manufacturing overhead: Total Per Set of Covers

$4,600 2.00

When you add the Per Set of Covers section together for all the three standard costs, the total becomes $28.60

At standard, each set of covers should require 3.5 yards of material. All of the materials purchased during the month were used in production.

Chrome File Edit View History Bookmarks People Tab Window Help 7 73% Wed Dec 9 9 31 46 AM Q ... ACC-121-OSI1 2020FA: McGra x McGraw-Hill Education Campu: X Connect X + > C A ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Fnewconnect.mheducation.com%252F#/activity/qu... * W Chapter 10 - Homework Saved Help Save & Exit Submit You received partial credit in the previous attempt. Check my work 2 View previous attempt 3 production. Required: 1. Compute the materials price and quantity variances for August. 2. Compute the labor rate and efficiency variances for August. 6.68 3. Compute the variable overhead rate and efficiency variances for August. points (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.) eBook Print 1. Materials price variance 9,240 F Materials quantity variance 46,512 U 2. Labor rate variance ,580 U Labor efficiency variance ,350 F 3. Variable overhead rate variance 2,200 U Variable overhead efficiency variance 360 F Hill Education DEC 9 . . . O