Mickey's Amusements Mickey's Amusements manufactures ride vehicles for roller coasters. One of their products is a seat with harness, for coasters that have inversions. Mickey's uses a standard cost system for all products. According to the standards set for the seat with harness, the factory should work 990 hours each month to produce 1,980 seats. The standard costs associated with this production are: Total $39,798 5,940 Per Seat $ 20.10 3.00 Direct materials Direct labor Variable manufacturing OH (based on direct labor hours) 3,168 1.60 $24.70 During January, the factory worked only 1,000 direct labor hours and produced 2,200 seats. The following actual costs were incurred during January: Direct materials (7,400 sq. ft.) Direct labor Variable manufacturing OH (based on direct labor hours) Total $40,700 8,140 Per Seat $ 18.50 3.70 3,960 1.80 $24.00 At the standard, each seat requires 3.0 sq. ft of material. All materials purchased in January were used in production. Calculate the following (be sure to label variances as F/U): 1.) What is the Materials price variance? (Answer: $8,880 F) 2.) What is the Materials quantity variance? (Answer: $9,782 U)