Mc Problem 10-9 Comprehensive Variance Analysis [LO10-1, LO10-2, LO10-3] 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 1,060 hours each month to produce 2,120 sets of covers. The standard costs associated with this level of production are: Direct materials Total $43,460 Direct labor on direct labor-hours) $ 9,540 Per Set of Covers $20.50 4.50 Variable manufacturing overhead (based) $ 4,664 2.20 $27.20 During August, the factory worked only 500 direct labor-hours and produced 2,200 sets of covers. The following actual costs were recorded during the month: Direct materials (8,000 yards) Direct labor Variable manufacturing overhead Per Set Total of Covers $44,000 $20.00 $10,340 4.70 $ 5,500 2.50 $27.28 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.