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

Marvel Parts, Incorporated, 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 $1,230$ hours each month to produce $2,050$ sets of covers. The standard costs associated with this level of production are:

$$TotalPer Set of CoversDirect materials$ $27,675$$ $13\mathrm{.}50$Direct labor$ $8,6104\mathrm{.}20$Variable manufacturing overhead $($based on direct labor$-$hours$)$$ $4,9202\mathrm{.}40$$ $20\mathrm{.}10$

During August, the factory worked only $750$ direct labor$-$hours and produced $1,500$ sets of covers. The following actual costs were recorded during the month:

$$TotalPer Set of CoversDirect materials $(3,900$ yards$)$$ $19,500$$ $13\mathrm{.}00$Direct labor$ $6,6004\mathrm{.}40$Variable manufacturing overhead$ $4,8003\mathrm{.}20$$ $20\mathrm{.}60$

At standard, each set of covers should require $1\mathrm{.}8$ 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. Marvel Parts, Incorporated, 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 $1,230$ hours each month to produce $2,050$ sets of covers. The standard costs associated with this level of production are:

During August, the factory worked only $750$ direct labor$-$hours and produced $1,500$ sets of covers. The following actual costs were recorded during the month:

At standard, each set of covers should require $1\mathrm{.}8$ 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 $($i$.$e$.,$ zero variance$).$ Input all amounts as positive values.

During August, the factory worked only $750$ direct labor$-$hours and produced $1,500$ sets of covers. The following actual costs were recorded during the month:

At standard, each set of covers should require $1\mathrm{.}8$ 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 $($i$.$e$.,$ zero variance$).$ Input all amounts as positive values.