Marvel Parts, Incorporated, 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 1,000 hours each month to produce 2,000 sets of covers. The standard costs associated with this level of production are: Total Per Set of Covers Direct materials $ 41,400 Direct labor $ 8,000 $ 20.70 4.00 Variable manufacturing overhead (based on direct labor-hours) $ 3,400 1.70 $ 26.40 During August, the factory worked only 1,050 direct labor-hours and produced 2,400 sets of covers. The following actual costs were recorded during the month: Direct materials (7,500 yards) Direct labor Variable manufacturing overhead Per Set of Total $ 48,000 $ 10,080 $ 5,040 Covers $ 20.00 4.20 2.10 $ 26.30 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. (Do not round Intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (l.e., zero varlance). Input all amounts as positive values.) 1. Materials price variance Answer is complete but not entirely correct. 1. Materials quantity variance 2. Labor rate variance 39,375 F 6,975 U 5,775 XU 34,200 F 2. Labor efficiency variance 3. Variable overhead rate variance 3. Variable overhead efficiency variance 1,260 XU 10,302 X F