Problem $10-9(Algo)$ Comprehensive Variance Analysis $[LO10-1,LO10-2,LO10-3]$

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 $980$ hours each month $to$ produce $1,960$ sets $of-$seat covers. The standard costs associated with this level $of$ production are:

Direct materials

Direct labor

Variable manufacturing overhead $(basedon$

direct labor$-$hours$)$

Total

$ $32,340$

$ $6,860$

Per Set $of$

Covers

$ $16\mathrm{.}50$

$3\mathrm{.}50$

$ $1,960$

$1\mathrm{.}00$

$ $21\mathrm{.}00$

During August, the factory worked $1,000$ direct labor$-$hours and produced $2,100$ sets $of$ covers. The following actual costs were recorded during the month:

Direct materials $(6,000$ yards$)$

Direct labor

Variable manufacturing overhead

Total

$ $34,020$

$ $7,770$

$ $3,990$

Per Set $of$ Covers

$ $16\mathrm{.}20$

$3\mathrm{.}70$

$1\mathrm{.}90$

$ $21\mathrm{.}80$

$At$ standard, each set $of$ covers should require $2\mathrm{.}5$ yards $of$ material. All $of$ the materials purchased during the month were used $in$ production.

Required:

$Compute$ the materials price and quantity variances for August.

$Compute$ the labor rate and efficiency variances for August.

$Compute$ 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 $(i.e.,$ zero variance$).$ Input all amounts $as$ positive values.

Problem $10-9(Algo)$ Comprehensive Variance Analysis $[LO10-1,LO10-2,LO10-3]$

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 $980$ hours each month $to$ produce $1,960$ sets $of$ feat covers. The standard costs

associated with this level $of$ production are:

During August, the factory worked $1,000$ direct labor$-$hours and produced $2,100$ sets $of$ covers. The following actual costs were

recorded during the month:

$At$ standard, each set $of$ covers should require $2\mathrm{.}5$ yards $of$ material. All $of$ the materials purchased during the month were used $in$

production.

Required:

Compute the materials price and quantity variances for August.

Compute the labor rate and efficiency variances for August.

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 $(i.e.,$ zero variance$).$ Input all amounts $as$ positive values.

$1$ Materials nrica varianne

$5,55RI$

Direct materials $(6,000$ yards$)$

Direct labor

Variable manufacturing overhead

$[$$$34,020],[$$$7,770,$$$16\mathrm{.}20],[$$$3,990],[,3\mathrm{.}70],[,1\mathrm{.}90]$

$At$ standard, each set $of$ covers should require $2\mathrm{.}5$ yards $of$ material. All $of$ the material

production.

Required:

Compute the materials price and quantity variances for August.

Compute the labor rate and efficiency variances for August.

Compute the variable overhead rate and efficiency variances for August.

Note: $Do$ not round intermediate calculations. Indicate the effect $of$ each variance

unfavorable, and "None" for $no$ effect $(i.e.,$ zero variance$).$ Input all amounts $as$ positve numbers.