QuestionlrEmmSV mil; + 6 C szto.ml'isducatic-nccim Exam 3iCh 10.11.14) 0 Saved Help SaveaExit Submit 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 1,035 hours each month to produce 2,070 sets of covers. The standard costs associated with this level of production are: 1 Marvel Farts, Incorporated, manufactures auto accessories. One ofthe company's products ls a set of seat covers that can be adjusted Per- Set of 19 Total (wars points Direct materials 5. 31,878 5 15.49 Direct labar x. 6,218 3.30 Variable manufacturing overhead (based bn direct labor-hours) g. 4,347 2.13 s 2e.so During August, the factory worked only 500 direct laborrhours and produced 1,700 sets of covers. The following actual costs were recorded during the month: Total Per- Set af (avers Direct materials (5,008 yards) x. 25,509 5 15.90 Direct labar g. 5,449 3.23 Variable manufacturing overhead is 4,688 2.43 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: l, 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 variance by selecting "F" for favorable. \"U" for unfavorable. and "None" for no effect (i.e.. zero variance). lnputall amounts as positive values.) 1 Materials price variance I v M: c 1 t 24 H iii\" Prev 0 Next >