PROBLEM 109 Comprehensive Variance Analysis LO101, LO102, LO103

Marvel Parts, Inc., manufactures auto accessories. One of the companys 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 2,850 hours each month to produce 1,900 sets of covers. The standard costs associated with this level of production are:

	Total	Per Set of Covers
Direct materials	$42,560	$22.40
Direct labor	$51,300	27.00
Variable manufacturing overhead (based on direct labor-hours)	$6,840	3.60
		$53.00

During August, the factory worked only 2,800 direct labor-hours and produced 2,000 sets of covers. The following actual costs were recorded during the month:

	Total	Per Set of Covers
Direct materials (12,000 yards)	$45,600	$22.80
Direct labor	$49,000	24.50
Variable manufacturing overhead	$7,000	3.50
		$50.80

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:

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.

I did ask the question but they havent responded and its been quite a while. Any chance you could review their answer and see where that number came from?/?

Hi, I submitted PROBLEM 109 Comprehensive Variance Analysis LO101, LO102, LO103 earlier and the answer was helpful but I have no idea where 62,560 came from towards the beginning of the problem. I added the question to the problem but wasn't sure if I needed to send the question here...