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Problem 10-9 Comprehensive Variance Analysis [LO10-1, LO10-2, LO10-3] Marvel Parts, Inc., manufactures auto accessories. One of the company's products is a set of seat covers

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Problem 10-9 Comprehensive Variance Analysis [LO10-1, LO10-2, LO10-3] 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 1.005 hours each month to produce 2010 sets of covers. The standard costs associated with this level of production are: Total $ 28,542 Direct materials Direct labor Variable manufacturing overhead (based on direct labor-hours) of Covers $ 14.20 4.02 3,618 During August, the factory worked only 1.200 direct labor-hours and produced 2.600 sets of covers. The following actual costs were recorded during the month: Direct materials (6,000 yards) Direct labor Variable manufacturing overhead Total $ 35,100 $ 18,920 55,458 Per Set of covers $1.50 120 At standard, each set of covers should require 2.0 yards of material. Al of the materia's purchased during the month were used in Production Required: Compute the materials price and quantity variances for August 12 Compute the labor rate and efficiency variances or August 13. Compute the vanable ove mead rate and efficiency vanances for August indicate the effect of each vorlance by selecting variance). Input all amounts as positive values.) for favorable for unfavorable, and None for no effectEero At standard, each set of covers should require 20 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 2 Compute the labor rate and efficiency variances for August. 3. Compute the variable overhead rate and efficiency variances for August. (Indicate the effect of each varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (.e., zero variance). Input all amounts as positive values.) Materials price variance Materials quantity variance Labor rate vanance Labor efficiency variance Variable overhead rate variance Variable overhead efficiency variance ere to search o t a

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