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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

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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 1,230 hours each month to produce 2,050 sets of covers. The standard costs associated with this level of production are as follows: Total $ 27,675 $ 8,610 Per Set of Covers $13.50 4.20 Direct materials Direct labour Variable manufacturing overhead (based on direct labour-hours) $ 4,920 2.40 $20.10 During August, the factory worked only 750 direct labour-hours and produced 1,500 sets of covers. The following actual costs were recorded during the month: Direct materials (3,900 yards) Direct labour Variable manufacturing overhead Total $ 19,500 $ 6,600 $ 4,800 Per Set of Covers $13.00 4.40 3.20 $20.60 At standard, each set of covers should require 1.80 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 (i.e, zero variance).) Materials price variance Materials quantity variance 2. Compute the labour rate and efficiency variances for August. (Input all amounts as positive values. Indicate the effect of ach variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e, zero variance).) Labour rate variance Labour efficiency variance 3. Compute the variable overhead rate and efficiency 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 (i.e, zero variance).) Variable overhead rate variance Variable overhead efficiency variance

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