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 995 hours each month to produce 1,990 sets of seat covers. The standard costs associated with this level of production are: Total Direct materials $ 47,362 Direct labor $ 8,955 Per Set of Covers $ 23.80 4.50 Variable manufacturing overhead (based on direct labor-hours) $ 2,388 1.20 $ 29.50 During August, the factory worked 1,000 direct labor-hours and produced 2,300 sets of covers. The following actual costs were recorded during the month: Total Direct materials (8,800 yards) Direct labor $ 50,600 $ 10,580 Per Set of Covers $ 22.00 Variable manufacturing overhead $ 4,600 4.60 2.00 $ 28.60 At standard, each set of covers should require 3.5 yards of material. All of the materials purchased during the month were used in production. Required: 23.80 Required: 1) compute the materials price and quantity variances for august 2) conpute the labor rate and efficency variances for august 3) compute the variable overhead rate and efficeny variances for august

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 995 hours each month to produce 1,990 sets of seat covers. The standard costs associated with this level of production are: Total Direct materials $ 47,362 Direct labor $ 8,955 Per Set of Covers $ 23.80 4.50 Variable manufacturing overhead (based on direct labor-hours) $ 2,388 1.20 $ 29.50 During August, the factory worked 1,000 direct labor-hours and produced 2,300 sets of covers. The following actual costs were recorded during the month: Total Direct materials (8,800 yards) Direct labor $ 50,600 $ 10,580 Per Set of Covers $ 22.00 Variable manufacturing overhead $ 4,600 4.60 2.00 $ 28.60 At standard, each set of covers should require 3.5 yards of material. All of the materials purchased during the month were used in production. Required: 23.80 Required: 1) compute the materials price and quantity variances for august 2) conpute the labor rate and efficency variances for august 3) compute the variable overhead rate and efficeny variances for august

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Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter23: Evaluating Variances From Standard Costs

Section: Chapter Questions

Problem 4CMA: JoyT Company manufactures Maxi Dolls for sale in toy stores. In planning for this year, JoyT...

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