Marvel Parts, Ic., manufactures auto accessories. One of the company's products is a set of seat covers that can beadjusted to fit nearly any small car. The company has a standard cost system in use for all of its products. According tothe standards that have been set for the seat covers, the factory should work 1,060 hours each month to produce 2,120sets of covers. The standard costs associated with this level of production are:Per Setof Covers$ 43,460 $20.504.50TotalDirect materialsDirect labor$ 9,540Variable manufacturing overhead (basedon direct labor-hours)$ 4,6642.20$27.20During August, the factory worked only 500 direct labor-hours and produced 2,200 sets of covers. The following actualcosts were recorded during the month:Per Setof Covers$ 44,000 $20.00$ 10,340$ 5,500TotalDirect materials (8,000 yards)Direct labor4.70Variable manufacturing overhead2.50$27.20At standard, each set of covers should require 2.5 yards of material. All of the materials purchased during the monthwere 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.(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 price varianceMaterials quantity variance2. Labor rate varianceLabor efficiency variance3. Variable overhead rate varianceVariable overhead efficiency variance

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Description: Marvel Parts, Ic., manufactures auto accessories. One of the company's products is a set of seat covers that can beadjusted to fit nearly any small car. The company has a standard cost system in use for all of its products. According tothe standards

Variances occurs when there is difference between standard rates, quantity and actual rates,…

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Marvel Parts, Ic., 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 1,060 hours each month to produce 2,120 sets of covers. The standard costs associated with this level of production are: Per Set of Covers Total $ 43,460 $20.50 $ 9,540 Direct materials Direct labor 4.50 Variable manufacturing overhead (based on direct labor-hours) $ 4,664 2.20 $27.20 During August, the factory worked only 500 direct labor-hours and produced 2,200 sets of covers. The following actual costs were recorded during the month: Per Set of Covers Total $ 44,000 $20.00 $ 10,340 $ 5,500 Direct materials (8,000 yards) Direct labor 4.70 Variable manufacturing overhead 2.50 $27.20 At standard, each set of covers should require 2.5 yards of material. All of the materials purchased during the month were used in production.

Marvel Parts, Ic., 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 1,060 hours each month to produce 2,120 sets of covers. The standard costs associated with this level of production are: Per Set of Covers Total $ 43,460 $20.50 $ 9,540 Direct materials Direct labor 4.50 Variable manufacturing overhead (based on direct labor-hours) $ 4,664 2.20 $27.20 During August, the factory worked only 500 direct labor-hours and produced 2,200 sets of covers. The following actual costs were recorded during the month: Per Set of Covers Total $ 44,000 $20.00 $ 10,340 $ 5,500 Direct materials (8,000 yards) Direct labor 4.70 Variable manufacturing overhead 2.50 $27.20 At standard, each set of covers should require 2.5 yards of material. All of the materials purchased during the month were used in production.

Essentials of Business Analytics (MindTap Course List)

2nd Edition

ISBN:9781305627734

Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Publisher:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Chapter13: Nonlinear Optimization Models

Section: Chapter Questions

Problem 8P: Andalus Furniture Company has two manufacturing plants, one at Aynor and another at Spartanburg. The...

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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 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 1,040 hours each month to produce 2,080 sets of covers. The standard costs associated with this level of production are: Per Set of Covers $40,540 $19.50 3.50 Total Direct materiale Direct labor Variable manufacturing overhead (based on direct labor-hourn) 7.200 2.00 $25.00 E4.160 During August, the factory worked only 600 direct iabor-hours and produced 1,800 sets of covers. The folowing actual costs were recorded during the month: Per Set of Covers 34,200 19.00 3.70 2.30 $25.00 total Direct naterials (5,000 yarde) Direet labor Variable manufacturing overhead $6,640 4,140 At standard, each set of covers should require 2.5 yards of material. All of the materiais purchased…
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 has a standard cost system in use for all of its products. According to the standards that have b set for the seat covers, the factory should work 1,045 hours each month to produce 2,090 sets of covers. The standard costs associated with this level of production are: Per Set of Covers $23.70 Total $ 49,533 $ 10,450 Direct materials Direct labor 5.00 Variable manufacturing overhead (based on direct labor-hours) $ 4,598 2.20 $30.90 During August, the factory worked only 800 direct labor-hours and produced 1,900 sets of covers. The following actual costs were recorded during the month: Per Set of Covers $23.40 Total Direct materials (6,500 yards) $ 44,460 $ 9,880 $ 4,560 Direct labor 5.20 Variable manufacturing overhead 2.40 $31.00 At standard, each set of covers should require 3.0 yards of material. All of the materials…
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 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 1,030 hours each month to produce 2,060 sets of covers. The standard costs associated with this level of production are: Total Per Setof Covers Direct materials $ 39,140 $ 19.00 Direct labor $ 9,270 4.50 Variable manufacturing overhead (based on direct labor-hours) $ 3,502 1.70 $ 25.20 During August, the factory worked only 640 direct labor-hours and produced 1,600 sets of covers. The following actual costs were recorded during the month: Total Per Setof Covers Direct materials (5,500 yards) $ 29,920 $ 18.70 Direct labor $ 7,520 4.70 Variable manufacturing overhead $ 4,000 2.50 $ 25.90 At…
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 1,030 hours each month to produce 2,060 sets of covers. The standard costs associated with this level of production are: Total Per Set of Covers Direct materials $ 39,140 $ 19.00 Direct labor $ 9,270 4.50 Variable manufacturing overhead (based on direct labor-hours) $ 3,502 1.70 $ 25.20 During August, the factory worked only 640 direct labor-hours and produced 1,600 sets of covers. The following actual costs were recorded during the month: Total Per Set of Covers Direct materials (5,500 yards) $ 29,920 $ 18.70 Direct labor $ 7,520 4.70 Variable manufacturing overhead $ 4,000 2.50 $ 25.90 At standard, each set of covers should…