According to its standards, the factory should work 1,040 hours each month to produce 2,080 sets...

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According to its standards, the factory should work 1,040 hours each month to produce 2,080 sets of seat covers. The standard costs associated with this level of production are: Total Direct materials $ 40,560 Direct labor $ 7,280 Per Set of Covers $ 19.50 3.50 Variable manufacturing overhead (based on direct labor-hours) $ 4,160 2.00 $ 25.00 During August, the factory worked 600 direct labor-hours and produced 1,800 sets of covers. The following actual costs were recorded during the month: Direct materials (5,000 yards) Direct labor Variable manufacturing overhead Total $ 34,200 $ 6,660 $ 4,140 Per Set of Covers $ 19.00 3.70 2.30 $ 25.00 At standard, each set of covers should require 2.5 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. 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 (l.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 According to its standards, the factory should work 1,040 hours each month to produce 2,080 sets of seat covers. The standard costs associated with this level of production are: Total Direct materials $ 40,560 Direct labor $ 7,280 Per Set of Covers $ 19.50 3.50 Variable manufacturing overhead (based on direct labor-hours) $ 4,160 2.00 $ 25.00 During August, the factory worked 600 direct labor-hours and produced 1,800 sets of covers. The following actual costs were recorded during the month: Direct materials (5,000 yards) Direct labor Variable manufacturing overhead Total $ 34,200 $ 6,660 $ 4,140 Per Set of Covers $ 19.00 3.70 2.30 $ 25.00 At standard, each set of covers should require 2.5 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. 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 (l.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

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Variance Analysis for Dakota Mining Company August Production 1 Materials Variances a Materials Price Variance Standard price per yard 1950 total stan... View the full answer