Marvel Parts, Incorporated, 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 1,065 hours each month to produce 2,130 sets of covers. The standard costs associated with this level of production are:

TotalPer Set of CoversDirect materials$ 35,358$ 16.60Direct labor$ 8,5204.00Variable manufacturing overhead (based on direct labor-hours)$ 3,1951.50 $ 22.10

During August, the factory worked only 1,050 direct labor-hours and produced 2,700 sets of covers. The following actual costs were recorded during the month:

TotalPer Set of CoversDirect materials (6,000 yards)$ 43,740$ 16.20Direct labor$ 11,3404.20Variable manufacturing overhead$ 5,6702.10 $ 22.50

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.

NEED ANSWERS TO:

1. Materials price variance

1b. Materials quantity variance

2. Labor rate variance

2b. Labor efficiency variance

3. Variable overhead rate variance

3b. Variable overhead efficiency variance