Problem 10-9 (Static) 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 2,850 hours each month to produce 1,900 sets of seat covers. The standard costs associated with this level of production are: Total Direct materials $ 42,560 Direct labor $ 51,300 Variable manufacturing overhead (based on direct labor-hours) $ 6,840 Per Set of Covers $ 22.40 27.00 3.60 $ 53.00 During August, the factory worked 2,800 direct labor-hours and produced 2,000 sets of covers. The following actual costs were recorded during the month: Direct materials (12,000 yards) Direct labor Variable manufacturing overhead Per Set of Total $ 45,600 $ 49,000 $ 7,000 Covers $ 22.80 24.50 3.50 $ 50.80 At standard, each set of covers should require 5.6 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 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