Marvel Parts, Inc., manufactures auto accessories. One of the company's products is a set of seat cov that can be adjusted to fit nearly any small car. The company has a standard cost system in use for al its products. According to the standards that have been set for the seat covers, the factory should we 990 hours each month to produce 1,980 sets of covers. The standard costs associated with this level production are: Per Set of Covers $20.10 3.00 Total $ 39,798 $ 5,940 Direct materials Direct labor Variable manufacturing overhead (based on direct labor-hours) $ 3,168 1.60 $24.70 During August, the factory worked only 1,000 direct labor-hours and produced 2,200 sets of covers. The following actual costs were recorded during the month: Direct materials (7,400 yards) Direct labor Variable manufacturing overhead Total $ 40,700 $ 8,140 $ 3,960 Per Set of Covers $18.50 3.70 1.80 $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