PROBLEM 10-9 Comprehensive Variance Analysis LO10-1G, LO10-22, LO10-3 Marvel Parts, Inc., 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 of covers. The standard costs associated with this level of production are manufactures auto accessories. One of the company's products is a set of seat covers that can be Per Set Total of Covers Direct materials Direct labor Variable manufacturing overhead $42,560$22.40 $ 51,300 27.00 (based on direct labor-hours) $6,8403.60 $53.00 During August, the factory worked only 2,8oo direct labor-hours and produced 2000 sets of covers. The following actual costs were recorded during the month: Per Set Total of Covers Direct materials (12,000 yards) $45,600 $2280 $49,00024.50 Variable manufacturing overhead $7,000 3.50 Direct labor S50.80 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: 1. The materials price and quantity variances. 2. The labor rate and efficiency variances. 3. The variable overhead rate and efficiency variances