1. Find materials price variance and materials quantity variance for August

2. Compute labor rate and efficiency variances for August

3. Compute variable overhead rate and efficiency variances for August

Marvel Parts, Inc., 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 has a standard cost system in use for all of its products. According to the standards that have been set for the seat covers, the factory should work 1,075 hours each month to produce 2,150 sets of covers. The standard costs associated with this level of production are: Total $51,170 $10,750 Per Set of Covers $25.50 5.00 Direct materials Direct labor Variable manufacturing overhead (based on direct labor-hours) $ 5,375 2.50 $33.00 During August, the factory worked only 800 direct labor-hours and produced 2,500 sets of covers. The following actual costs were recorded during the month: Direct materials (12,500 yards) Direct labor Variable manufacturing overhead Total $ 58,750 $ 13,000 $ 7,000 Per Set of Covers $23.50 5.20 2.80 $31.50 At standard, each set of covers should require 3.00 yards of material. All of the materials purchased during the month were used in production