Reference no: EM133085579

Question - Marvel parts, Inc., manufactures auto accessories. One of the company's products is a set of seat cover 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 980 hours each month to produce 1,960 sets of covers. The standard costs associated with this level of production are;

During August, the factory worked only 1,000 direct labor- hours and produced 2100 sets of covers. The following actual costs were recorded during the month:

At standard, each set of covers should require 2.5 yards of material. All of the materials purchases 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 variance and variable overhead efficiency variance for august.