Marvel Parts, Inc., manufactures auto accessories. One of thecompanyâs products is a set of seat covers that can be adjusted tofit nearly any small car. The company has a standard cost system inuse for all of its products. According to the standards that havebeen set for the seat covers, the factory should work 1,005 hourseach month to produce 2,010 sets of covers. The standard costsassociated with this level of production are:
Total PerSet
of Covers Directmaterials $ 28,542 $ 14.20 Direct labor $ 8,040 4.00 Variablemanufacturing overhead
(based on direct labor-hours) $ 3,618 1.80 $ 20.00
During August, the factory worked only 1,200 direct labor-hoursand produced 2,600 sets of covers. The following actual costs wererecorded during the month:
Total PerSet
of Covers Directmaterials (6,000 yards) $ 35,100 $ 13.50 Direct labor $ 10,920 4.20 Variable manufacturingoverhead $ 5,460 2.10 $ 19.80
At standard, each set of covers should require 2.00 yards ofmaterial. All of the materials purchased during the month were usedin production.
Required:
1. Compute the materials price and quantity variances for August.(Input all amounts as positive values. Indicate the effectof each variance by selecting "F" for favorable, "U" forunfavorable, and "None" for no effect (i.e, zerovariance).)
2. Compute the labor rate and efficiency variances for August.(Input all amounts as positive values. Indicate the effectof each variance by selecting "F" for favorable, "U" forunfavorable, and "None" for no effect (i.e, zerovariance).)
3. Compute the variable overhead rate and efficiency variances forAugust. (Input all amounts as positive values. Indicate theeffect of each variance by selecting "F" for favorable, "U" forunfavorable, and "None" for no effect (i.e, zerovariance).)
Marvel Parts, Inc., manufactures auto accessories. One of thecompanyâs products is a set of seat covers that can be adjusted tofit nearly any small car. The company has a standard cost system inuse for all of its products. According to the standards that havebeen set for the seat covers, the factory should work 1,005 hourseach month to produce 2,010 sets of covers. The standard costsassociated with this level of production are: |
| Total | PerSet of Covers | ||||
| Directmaterials | $ | 28,542 | $ | 14.20 | |
| Direct labor | $ | 8,040 | 4.00 | ||
| Variablemanufacturing overhead (based on direct labor-hours) | $ | 3,618 | 1.80 | ||
| $ | 20.00 | ||||
During August, the factory worked only 1,200 direct labor-hoursand produced 2,600 sets of covers. The following actual costs wererecorded during the month: |
| Total | PerSet of Covers | ||||
| Directmaterials (6,000 yards) | $ | 35,100 | $ | 13.50 | |
| Direct labor | $ | 10,920 | 4.20 | ||
| Variable manufacturingoverhead | $ | 5,460 | 2.10 | ||
| $ | 19.80 | ||||
At standard, each set of covers should require 2.00 yards ofmaterial. All of the materials purchased during the month were usedin production. |
| Required: |
| 1. | Compute the materials price and quantity variances for August.(Input all amounts as positive values. Indicate the effectof each variance by selecting "F" for favorable, "U" forunfavorable, and "None" for no effect (i.e, zerovariance).) |
| 2. | Compute the labor rate and efficiency variances for August.(Input all amounts as positive values. Indicate the effectof each variance by selecting "F" for favorable, "U" forunfavorable, and "None" for no effect (i.e, zerovariance).) |
| 3. | Compute the variable overhead rate and efficiency variances forAugust. (Input all amounts as positive values. Indicate theeffect of each variance by selecting "F" for favorable, "U" forunfavorable, and "None" for no effect (i.e, zerovariance).) |
Related questions
Marvel Parts, Inc., manufactures auto accessories. One of thecompanyâs products is a set of seat covers that can be adjusted tofit nearly any small car. The company has a standard cost system inuse for all of its products. According to the standards that havebeen set for the seat covers, the factory should work 1,005 hourseach month to produce 2,010 sets of covers. The standard costsassociated with this level of production are: |
| Total | PerSet of Covers | ||||
| Directmaterials | $ | 28,542 | $ | 14.20 | |
| Direct labor | $ | 8,040 | 4.00 | ||
| Variablemanufacturing overhead (based on direct labor-hours) | $ | 3,618 | 1.80 | ||
| $ | 20.00 | ||||
During August, the factory worked only 1,200 direct labor-hoursand produced 2,600 sets of covers. The following actual costs wererecorded during the month: |
| Total | PerSet of Covers | ||||
| Directmaterials (6,000 yards) | $ | 35,100 | $ | 13.50 | |
| Direct labor | $ | 10,920 | 4.20 | ||
| Variable manufacturingoverhead | $ | 5,460 | 2.10 | ||
| $ | 19.80 | ||||
At standard, each set of covers should require 2.00 yards ofmaterial. All of the materials purchased during the month were usedin production. |
| 1. | Compute the materials price and quantity variances for August.(Indicate the effect of each variance by selecting "F" forfavorable, "U" for unfavorable, and "None" for no effect (i.e.,zero variance). Round your intermediate calculations to 2 decimalplaces. Round "Standard Price" and "Actual Price" answers to 2decimal places.) materials price variance: materials quantity variance:
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Marvel Parts, Inc., manufactures auto accessories. One of thecompanyâs products is a set of seat covers that can be adjusted tofit nearly any small car. The company has a standard cost system inuse for all of its products. According to the standards that havebeen set for the seat covers, the factory should work 995 hourseach month to produce 1,990 sets of covers. The standard costsassociated with this level of production are:
| Total | PerSet of Covers | ||||
| Directmaterials | $ | 47,362 | $ | 23.80 | |
| Direct labor | $ | 8,955 | 4.50 | ||
| Variable manufacturingoverhead (based on direct labor-hours) | $ | 2,388 | 1.20 | ||
| $ | 29.50 | ||||
During August, the factory worked only 1,000 direct labor-hoursand produced 2,300 sets of covers. The following actual costs wererecorded during the month:
| Total | PerSet of Covers | ||||
| Direct materials(8,800 yards) | $ | 50,600 | $ | 22.00 | |
| Direct labor | $ | 10,580 | 4.60 | ||
| Variable manufacturingoverhead | $ | 4,600 | 2.00 | ||
| $ | 28.60 | ||||
At standard, each set of covers should require 3.50 yards ofmaterial. All of the materials purchased during the month were usedin production.
Required
1. Compute the materials price and quantity variances forAugust.
2. Compute the labor rate and efficiency variances forAugust.
3. Compute the variable overhead rate and efficiency variancesfor August.
Marvel Parts, Inc., manufactures auto accessories. One of thecompanyâs products is a set of seat covers that can be adjusted tofit nearly any small car. The company has a standard cost system inuse for all of its products. According to the standards that havebeen set for the seat covers, the factory should work 2,850 hourseach month to produce 1,900 sets of covers. The standard costsassociated with this level of production are: |
| Total | PerSet of Covers | ||||
| Directmaterials | $ | 42,560 | $ | 22.40 | |
| Direct labor | $ | 17,100 | 9.00 | ||
| Variablemanufacturing overhead (based on direct labor-hours) | $ | 6,840 | 3.60 | ||
| $ | 35.00 | ||||
During August, the factory worked only 2,800 direct labor-hoursand produced 2,000 sets of covers. The following actual costs wererecorded during the month: |
| Total | PerSet of Covers | ||||
| Directmaterials (12,000 yards) | $ | 45,600 | $ | 22.80 | |
| Direct labor | $ | 18,200 | 9.10 | ||
| Variable manufacturingoverhead | $ | 7,000 | 3.50 | ||
| $ | 35.40 | ||||
At standard, each set of covers should require 5.6 yards ofmaterial. All of the materials purchased during the month were usedin production. |
| Required: |
| 1. | Compute the materials price and quantity variances for August.(Input all amounts as positive values. Indicate the effectof each variance by selecting "F" for favorable, "U" forunfavorable, and "None" for no effect (i.e, zerovariance).) | ||||||||||||
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| 2. | Compute the labor rate and efficiency variances for August.(Input all amounts as positive values. Indicate the effectof each variance by selecting "F" for favorable, "U" forunfavorable, and "None" for no effect (i.e, zerovariance).)
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| 3. | Compute the variable overhead rate and efficiency variances forAugust. (Input all amounts as positive values. Indicate theeffect of each variance by selecting "F" for favorable, "U" forunfavorable, and "None" for no effect (i.e, zerovariance).) | ||||||||||||
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