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 1,070 hourseach month to produce 2,140 sets of covers. The standard costsassociated with this level of production are:
Total Per Set of Covers Direct materials $ 26,964 $ 12.60 Directlabor $ 11,770 5.50 Variable manufacturing overhead (based ondirect labor-hours) $ 3,638 1.70 $ 19.80 During August, the factoryworked only 1,000 direct labor-hours and produced 2,400 sets ofcovers. The following actual costs were recorded during themonth:
Total Per Set of Covers Direct materials (6,000 yards) $ 29,280$ 12.20 Direct labor $ 13,680 5.70 Variable manufacturing overhead$ 5,760 2.40 $ 20.30
At standard, each set of covers should require 1.50 yards ofmaterial. All of the materials purchased during the month were usedin production. Required 1. Compute the materials price and quantityvariances for August. (Input all amounts as positive values.Indicate the effect of each variance by selecting "F" forfavorable, "U" for unfavorable, and "None" for no effect (i.e, zerovariance).)
Materials price variance Materlals quantity varlance 2. Compute the labor rate and efficiency variances for August. (Input all amounts as positive values. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (.e, zero varlance).) s 2,680 $ 2.200 Labor rate variance Labor efficiency variance 3. Compute the variable overhead rate and efficiency variances for August. (Input all amounts as positive values. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e, zero variance).) Variable overhead rate variance $ 2.360 Variable overhead efficiency variance
Show transcribed image textMaterials price variance Materlals quantity varlance 2. Compute the labor rate and efficiency variances for August. (Input all amounts as positive values. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (.e, zero varlance).) s 2,680 $ 2.200 Labor rate variance Labor efficiency variance 3. Compute the variable overhead rate and efficiency variances for August. (Input all amounts as positive values. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e, zero variance).) Variable overhead rate variance $ 2.360 Variable overhead efficiency variance
Marvel Parts, Inc., manufactures auto accessories. One of the companyâs 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 1,070 hours each month to produce 2,140 sets of covers. The standard costs associated with this level of production are:
Total
Per Set of Covers
Direct materials
$
26,964
$
12.60
Direct labor
$
11,770
5.50
Variable manufacturing overhead (based on direct labor-hours)
$
3,638
1.70
$
19.80
During August, the factory worked only 1,000 direct labor-hours and produced 2,400 sets of covers. The following actual costs were recorded during the month:
Total
Per Set of Covers
Direct materials (6,000 yards)
$
29,280
$
12.20
Direct labor
$
13,680
5.70
Variable manufacturing overhead
$
5,760
2.40
$
20.30
At standard, each set of covers should require 1.50 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. (Input all amounts as positive values. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e, zero variance).)
2.
Compute the labor rate and efficiency variances for August. (Input all amounts as positive values. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e, zero variance).)
3.
Compute the variable overhead rate and efficiency variances for August. (Input all amounts as positive values. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e, zero variance).)
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 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).)
