1. Compute the materials price and quantity variances for August.
2. Compute the labor rate and efficiency variances for August.
. Compute the variable overhead rate and efficiency variances for August. 3
Note: Do not round intermediate calculations. 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.

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Marvel Parts, Incorporated, manufactures auto accessories including a set of seat covers that can be adjusted to fit most cars. According to its standards, the factory should work 995 hours each month to produce 1,990 sets of seat covers. The standard costs associated with this level of production are: Total Direct materials $ 47,362 Direct labor $ 8,955 Per Set of Covers $ 23.80 4.50 Variable manufacturing overhead (based on direct labor-hours) $ 2,388 1.20 $ 29.50 During August, the factory worked 1,000 direct labor-hours and produced 2,300 sets of covers. The following actual costs were recorded during the month: Total Per Set of Covers Direct materials (8,800 yards) Direct labor $ 50,600 $ 10,580 Variable manufacturing overhead. $ 4,600 $ 22.00 4.60 2.00 $ 28.60 At standard, each set of covers should require 3.5 yards of material. All of the materials purchased during the month were used in production. Marvel Parts, Incorporated, manufactures auto accessories including a set of seat covers that can be adjusted to fit most cars. According to its standards, the factory should work 995 hours each month to produce 1,990 sets of seat covers. The standard costs associated with this level of production are: Total Direct materials $ 47,362 Direct labor $ 8,955 Per Set of Covers $ 23.80 4.50 Variable manufacturing overhead (based on direct labor-hours) $ 2,388 1.20 $ 29.50 During August, the factory worked 1,000 direct labor-hours and produced 2,300 sets of covers. The following actual costs were recorded during the month: Total Per Set of Covers Direct materials (8,800 yards) Direct labor $ 50,600 $ 10,580 Variable manufacturing overhead. $ 4,600 $ 22.00 4.60 2.00 $ 28.60 At standard, each set of covers should require 3.5 yards of material. All of the materials purchased during the month were used in production.

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Answer To compute the materials price and quantity variances for August we need to compare the actual costs with the standard costs 1 Materials Price Variance The materials price variance measures the ... View the full answer