Part 2: Short Problem (Total: 8 points) The company 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 990 hours each month to produce 1,980 sets of covers (i.e., the standard hours per set of covers is 0.5 standard hour per set, calculated as 990 standard hours = 1,980 sets). The standard costs associated with this level of production are: Direct materials Direct labor Variable manufacturing overhead (based on direct labor-hours) Per Set Total of Covers $ 51,163 $ 25.84 $ 8,910 4.50 2,970 1.50 $ 31.84 During August, the factory worked only 1,000 direct labor-hours and produced 2,500 sets of covers. The following actual costs were recorded during the month: Direct materials (8,000 yards) Direct labor Variable manufacturing overhead Total $ 48,000 $ 9,360 $ 4,080 Per Set of Covers $ 19.20 3.74 1.63 $24.57 At standard, each set of covers should require 3.8 yards of material. All of the materials purchased during the month were used in production. Required: 1. Complete the worksheet below. Compute the AP, AQ, SP, SQ of materials, and materials price and quantity variances for August. Indicate the effect of each variance (i.e., materials price variance and materials quantity variance): F for favorable, U for unfavorable, and None for no effect (i.e., zero variance). Input all amounts as positive values. AP (Actual Price per yard) AQ (Actual Quantity of Input, in yards) SP (Standard Price per yard) SQ (Standard Quantity Allowed for Output, in yards) Materials price variance Materials quantity variance