PROBLEM $2\_$IC: COMPREHENSIVE VARIANCE ANALYSIS

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 uses a standard cost system for all of its products. According to the standards set for the seat covers, the factory should work $2,850$ hours each month to produce $1,900$ sets of covers. The standard costs associated with this level of production are:

During August, the factory worked only $2,800$ direct labor$-$hours and produced $2,000$ sets of covers. The following actual costs were recorded during the month:

At standard, each set of covers should require $5\mathrm{.}6$ yards of material. All the materials purchased during the month were used in production.

Required

Compute the following variances for August:

$1.$ The materials price and quantity variances.

$2.$ The labor rate and efficiency variances.

$3.$ The variable overhead rate and efficiency variances.