Marvel Parts, Inc., manufactures auto accessories. One of the companys 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:

Total Per Set of Covers Direct materials $ 47,362 $ 23.80 Direct labor $ 8,955 4.50

Variable manufacturing overhead (based on direct labor-hours) $ 2,388 1.20 $ 29.50

During August, the factory worked only 1,000 direct labor-hours and produced 2,300 sets of covers. The following actual costs were recorded during the month: Total Per Set of Covers Direct materials (8,800 yards) $ 50,600 $ 22.00 Direct labor $ 10,580 4.60 Variable manufacturing overhead $ 4,600 2.00 $ 28.60 At standard, each set of covers should require 3.5 yards of material. All of the materials purchased during the month were used in production.

Marvel Parts, Inc., manufactures auto accessories. One of the companys 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:

	Total		Per Set of Covers
Direct materials	$	47,362	$	23.80
Direct labor	$	8,955		4.50
Variable manufacturing overhead (based on direct labor-hours)	$	2,388		1.20
			$	29.50

During August, the factory worked only 1,000 direct labor-hours and produced 2,300 sets of covers. The following actual costs were recorded during the month:

	Total		Per Set of Covers
Direct materials (8,800 yards)	$	50,600	$	22.00
Direct labor	$	10,580		4.60
Variable manufacturing overhead	$	4,600		2.00
			$	28.60

At standard, each set of covers should require 3.5 yards of material. All of the materials purchased during the month were used in production.

1. What is the materials price variance and materials quantity variance

2. What is the labor rate variance and labor efficiency variance.

3. Find Variable overhead rate variance and Var. OH efficiency variance.