Marvel Parts, incorporated, manufactures auto accessories. One of the company's prodults is a set of seat covers that can be

adjusted to fit nearly any small car. The company uses a standard cost system for all of its products. According to the standards

that have been set for the seat covers, the factory should work $2,850$ hours each month to produce $1,900$ sets of covers The

standard costs associated with this level of production are:

During August, the factory worked only $2,800$ direct labor$-$hours and produced $2\mathrm{.}000$ sets of covers. The following actual costs

were recorded during the month:

During August, the factory worked only $2,800$ direct labor$-$hours and produced $2,000$ sets of covers. The following actual conts

were recorded during the month:

At standard, each set of covers should require $5\mathrm{.}6$ yards of material. All of the materials purchased during the month were uned

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.

$($Indicate the effect of each variance by selecting $"F"$ for favorable, $"U"$ for unfavorable, and "None" for no effect $($i$.$e$,$ zero

variancel. Insut all amounts as bositive values.i

$($indicate the effect ef each varlance by selecting $"$F$\text{'}$ for fisvorable,"

verlance$),$ input all amounts as positive values.You have just been hired by FAB Corporation, the manufacturer of a revolutionary new garage door opening device. The president has asked that you review the company$$s costing system and $$do what you can to help us get better control of our manufacturing overhead costs.$$ You find that the company has never used a flexible budget, and you suggest that preparing such a budget would be an excellent first step in overhead planning and control.

After much effort and analysis, you determined the following cost formulas and gathered the following actual cost data for March:

Cost Formula Actual Cost in March

Utilities $$20,600+$ $$0\mathrm{.}10$ per machine$-$hour $ $24,200$

Maintenance $$40,000+$ $$1\mathrm{.}60$ per machine$-$hour $ $78,100$

Supplies $$0\mathrm{.}30$ per machine$-$hour $ $8,400$

Indirect labor $$130,000+$ $$0\mathrm{.}70$ per machine$-$hour $ $149,600$

Depreciation $$70,000$ $ $71,500$

During March, the company worked $26,000$ machine$-$hours and produced $15,000$ units. The company had originally planned to work $30,000$ machine$-$hours during March.