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 995 hours each month to produce 1,990 sets of covers. The standard costs associated with this level of production are as follows: per Set Total of Covers Direct materials 47,362 $ 23.80 Direct labour 8.955 4.50 Variable manufacturing overhead (based on direct labour-hours) 2,388 1.20 $ 29.50 During August, the factory worked only 1,000 direct labour-hours and produced 2,300 sets of covers. The following actual costs were recorded during the month: Per Set Total of Covers Direct materials (8,800 yards) 50,600 $ 22.00 Direct labour 10,580 4.60 Variable manufacturing overhead 4,600 2.00 $ 28.60