Problem 8-24a Question 1 only

Prepare a flexible budget for March. 2. Prepare a report showing the spending variances for March. Explain what these variances mean. PROBLEM 8-24A Comprehensive Variance Analysis [L08-4, LOB-5, LO ] 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 ucts. According to the standards that have been set for the seat covers, the factory should work 2,850 prod hours each month to produce 1,900 sets of covers. The standard costs associated with this level of produc- tion follow: Per Set Total of Covers $42,560 $22.40 9.00 Direct $6,840 3.60 $35.00 Variable manufacturing overhead (based on direct labor-hours)