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Marvel Parts, Incorporated, manufactures auto accessories including a set of seat covers that can be adjusted to fit most cars. According to its standards, the
Marvel Parts, Incorporated, manufactures auto accessories including a set of seat covers that can be adjusted to fit most cars.
According to its standards, the factory should work hours each month to produce sets of seat covers. The standard
costs associated with this level of production are:
During August, the factory worked direct laborhours and produced sets of covers. The following actual costs were
recorded during the month:
At standard, each set of covers should require yards of material. All of the materials purchased during the month were used
in production.
Required:
Compute the materials price and quantity variances for August.
Compute the labor rate and efficiency variances for August.
Compute the variable overhead rate and efficiency variances for August.
Note: Do not round intermediate calculations. 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.
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