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Marvel Parts, Incorporated 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 uses a standard cost system 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: Per Set of Total Covers Direct materials $ 42,560 $ 22. Direct labor $ 51,300 27.00 Variable manufacturing overhead (based on direct labor-hours) 5 5,340 3.60 $ 53.00 During August the factory worked only 2.800 direct latior hours and produced 2,000 sets of covers. The following actual costs were recorded during the month Per Set of Total Covers Direct saterials (12,000 yards) $ 45,000 $22.30 Direct labor 5.49.000 24.50 Variable manufacturing overhead 57,000 2.50 5.50.30 At standard, cach 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, an variance). Input all amounts as positive values.) ces 1. Materials price variance 1. Materials quantity variance 2. Labor rate vanance 2. Labor efficiency vanance 3 Variable overhead rate variance 3 Variable overhead efficiency vanance

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