Answered step by step
Verified Expert Solution
Question
...
1 Approved Answer
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
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 1,015 hours each month to produce 2,030 sets of covers. The standard costs associated with this level of production are: Per Set Total of Covers 559,276929.20 $ 3,120 4.00 Direct materials Direct labor Variable nanufacturing overhead (based on direct labor-hours) 3 3,857 1.90 $35.10 During August, the factory worked only 700 direct labor-hours and produced 1.500 sets of covers. The following actual costs were recorded during the month Direct materials (0.400 yards) Direct labor Variable manutacturing overhead Total 42,000 $6,300 $ 3, 150 Per set of Cover $28.00 4.20 12.10 534.30 At standard, each set of covers should require 40 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 (le, zero variance), Input all amounts as positive values.) 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 (.e., zero 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 variano Variable overhead efficiency variance
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/07/669dec5f1b48e_694669dec5eb4cf9.jpg)
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/07/669dec5fabd51_695669dec5f4a32f.jpg)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started