Problem $10-9$ Comprehensive Variance Analysis

Marvel Parts, Inc., 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 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 $990$ hours each month to produce $1,980$ sets of covers. The standard costs associated

with this level of production are:

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:

At standard, each set of covers should require $3\mathrm{.}3$ yards of material. All of the materials purchased

during the month were used in production.

Required:

Compute the following variances for August.

The materials price and quantity variances.

The labor rate and efficiency variances,

The variable overhead rate and efficiency variances.