Question 3 (15 marks) Marvelous Auto Parts (Pty) Ltd manufactures car 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 Direct Materials Direct labour Vanable manufacturing overhead(based on direct labour hours Total? R42 560 R17 100 R6 840 Per set of covers R22 40 R900 R3 60 R35 00 Dunng August, the factory worked only 2,800 direct labor-hours and produced 2,000 sets of covers The following actual costs were recorded dunng the month - Total Direct materials 12000 meters R45 600 Direct labour R18 200 Variable manufacturing Overhead R7 000 Per set-of.covers R22 80 R9 10 R3 50 R35 40 At standard, each set of covers should require 5 6 meters of material All of the materials purchased during the month were used in production MBA4807 MAY/JUNE 2019 Required Compute the following vanances for August 1 2 3. The materials price and quantity variances The labor rate and efficiency variances The variable overhead rate and efficiency vanances