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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 1,010 hours each month to produce 2,020 sets of covers. The standard costs associated with this level of production are: Direct materiala Direct Labor Variable manufacturing overhead (based on direct labor-hours) Per Set Total of Cover $36,360 $18.00 $ 7.070 3.50 $ 13030 1.50 $23.00 During August, the factory worked only 1.080 direct labor-hours and produced 2.700 sets of covers. The following actual costs were recorded during the month: Direct material (8,100 yards) Direct labor Variable manufacturing overhead Total $ 46,90 $ 9,990 $4,590 Per Set o Cover $17.40 3.70 1.70 522.00 At standard, each set of covers should require 2.0 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 (Indicate the effect of each variance by selecting "F* for favorable, "U" for unfavorable, and "None" for no effect (ie, zero variance). Input all amounts as positive values.) MacBook Air DOD 80 A F FS FS FV0 7 $ 4 % 5 & 7 3 6 8 9 ON Direct Labor Variable manufacturing overhead $ $4,590 BUTU 1.70 $22.80 At standard, each set of covers should require 2.0 yards of material. All of the ma 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 unfa 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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