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vel Parts, Inc., manufactures auto accessories. One of the company's products is a set of seat covers that can be adjusted to fit rly

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vel Parts, Inc., manufactures auto accessories. One of the company's products is a set of seat covers that can be adjusted to fit rly any small car. The company has a standard cost system in use for all of its products. According to the standards that have been for the seat covers, the factory should work 1,000 hours each month to produce 2,000 sets of covers. The standard costs ociated with this level of production are: Direct materials Direct labor Variable manufacturing overhead (based on direct labor-hours) Per Set of Covers $20.70 4.00 Total $41,400 $ 8,000 $ 3,400 $26.40 1.70 uring August, the factory worked only 1,050 direct labor-hours and produced 2,400 sets of covers. The following actual costs were ecorded during the month: Per Set Total of Covers Direct materials (7,500 yards). Direct labor $48,000 $20.00 $10,080 4.20 Variable manufacturing overhead. $ 5,040 2.10 $26.30 At standard, each set of covers should require 3.0 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. upffect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (ie., zero Help Save & Ex Chew

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