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Marvel Parts, Inc., manufactures auto accessories. One of thecompany’s products is a set of seat covers that can be adjusted tofit nearly any small car. The company has a standard cost system inuse for all of its products. According to the standards that havebeen set for the seat covers, the factory should work 1,020 hourseach month to produce 2,040 sets of covers. The standard costsassociated with this level of production are:TotalPer Setof CoversDirect materials$37,740$18.50Direct labor$9,1804.50Variable manufacturing overhead (based on directlabor-hours)$2,4481.20$24.20During August, the factory worked only 1,000 direct labor-hoursand produced 2,900 sets of covers. The following actual costs wererecorded during the month:TotalPer Setof CoversDirect materials (9,100 yards)$52,780$18.20Direct labor$13,6304.70Variable manufacturing overhead$4,6401.60$24.50At standard, each set of covers should require 2.5 yards ofmaterial. All of the materials purchased during the month were usedin production.Required:1. Compute the materials price and quantity variances forAugust.2. Compute the labor rate and efficiency variances forAugust.3. Compute the variable overhead rate and efficiency variancesfor August.