Problem 10-26 Comprehensive Variance Analysis [LO2, LO3, LO4] 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 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 2,850 hours each month to produce 1,900 sets of covers. The standard costs associated with this level of production are as follows: Direct materials Direct labour Variable manufacturing overhead (based on direct labour-hours) Per Set Total of Covers $42,560 $22.40 $17,100 $ 6,840 9.00 3.60 $ 35.00 During August, the factory worked only 2,800 direct labour-hours and produced 2,000 sets of covers. The following actual costs were recorded during the month: Total Direct materials (12,000 yards) Direct labour $ 45,600 Per Set of Covers $ 22.80 $ 18,200 9.10 Variable manufacturing overhead $ 7,000 3.50 $ 35.40 At standard, each set of covers should require 5.6 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. (Input all amounts as positive values. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e, zero variance).) Materials price variance Materials quantity variance $ 15,534 F