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: Per Set of Covers $22.40 27.00 Direct materials Total $ 42,560 Direct labor $ 51,300 Variable manufacturing overhead (based on direct labor-hours) $ 6,840 3.60 $ 53.00 During August, the factory worked only 2,800 direct labor-hours and produced 2.000 sets of covers. The following actual costs were recorded during the month: Direct materials (12,000 yards) Total $ 45,600 Direct labori $ 49,000 Variable manufacturing overhead $ 7,000 Per Set of Covers $ 22.80 24.50 3.50 $ 50.80 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: 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 (i.e., zero variance). Input all amounts as positive values.) 1. Materials price variance 1. Materials quantity variance 2. Labor rate variance 2. Labor efficiency variance 3. Variable overhead rate variance 3. Variable overhead efficiency variance