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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 990 hours each month to produce 1,980 sets of covers. The standard costs associated with this level of production are: Direct materials Direct labor Variable manufacturing overhead (based on direct labor-hours) Total $ 39,798 $ 5,940 Per Set of Covers $20.10 3.00 $ 3,168 1.60 $24.70 During August, the factory worked only 1000 direct labor hours and produced 2,200 sets of covers. The following actual costs were recorded during the month Direct naterials (7,400 yards) Direct labor Variable nanufacturing overhead Total $ 40,700 $ 0,140 $ 3,960 Per Set of Cover $18.50 3.70 1.00 $24.00 At standard, each set of covers should require 3.0 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. Bel of covers should require 3.0 yards of material. All of the materials purchased during the month were 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 (l.e., zer variance). Input all amounts as positive values.) 1. Materials price variance Materials quantity variance 2. Labor rate variance Labor efficiency variance 3. Variable overhead rate variance Variable overhead efficiency variance

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