QUZ CH 10 Exercises & Problems Help Save 2 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 1005 hours each month to produce 2010 sets of covers. The standard costs associated with this level of production are 4 DO Direct materials Direct labor Variable manufacturing overhead (based in direct labor hours) Der Set Total of covers $ 2,542 514.20 $ 0.040 4.00 54610 1.00 $20.00 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 Oirect tens (000 yardt Director PS Tota of Core 1o $1.5 10.12 5 2 wa ya Direct labor Variable manufacturing overhead 23 $ 19,920 $ 5,460 4.20 2 le $19.30 At standard, each set of covers should require 20 yards of material. All of the materials purchased during the month were used in production Book 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 variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (le, zero variance), Input all amounts os positive values.) 1. Materials price variance Materials quantity variance 2 Laborrate varianca Labor licency variance 3 Variable serate variance Variable overhead officiency valce Chec 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 Per Set of covers $14.20 Total 5 28,542 $ 3,00 Direct materials Direct labor Variable manufacturing overhead (based on direct Labor hours) 53,618 $20.00 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 yacos Direct labor Variable manufacturing what Total 100 5 10.920 Per Set of cours 313.50 4.20 2.1 $39.00 $19.80 Al 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 variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (... zero variance). Input all amounts os positive values.) 1 Materials price variance Material quantity variance 12 Laborrate variance Labor efficiency variance 3 Variable overhead rato variance Variable overhead efficiency variance