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., zerovariance). Input all amounts as positive values.)1. Materials price varianceMaterials quantity variance2. Labor rate varianceLabor efficiency variance3. Variable overhead rate varianceVariable overhead efficiency variance Marvel Parts, Inc., manufactures auto accessories. One of the company's products is a set of seat covers that can be adjusted to fitnearly any small car. The company has a standard cost system in use for all of its products. According to the standards that have bset for the seat covers, the factory should work 1,045 hours each month to produce 2,090 sets of covers. The standard costsassociated with this level of production are:Per Setof Covers$23.70Total$ 49,533$ 10,450Direct materialsDirect labor5.00Variable manufacturing overhead (based ondirect labor-hours)$ 4,5982.20$30.90During August, the factory worked only 800 direct labor-hours and produced 1,900 sets of covers. The following actual costs wererecorded during the month:Per Setof Covers$23.40TotalDirect materials (6,500 yards)$ 44,460$ 9,880$ 4,560Direct labor5.20Variable manufacturing overhead2.40$31.00At standard, each set of covers should require 3.0 yards of material. All of the materials purchased during the month were used inproduction.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., zerovariance). Input all amounts as positive values.)

Answered: Image /qna-images/answer/12d587cd-8e6a-490a-af9f-6b7351bff17c.jpg

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 Total of Covers $ 49,533 $ 10,450 Direct materials $23.70 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 Total of Covers $ 44,460 $ 9,880 $ 4,560 Direct materials (6,500 yards) $23.40 irect abor 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 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. (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.)

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...