Question

pter 10 HW- E10-5, P10-9 Question 2 (of 2) < value: 10.00 points 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 1,045 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 5.00 Total $ 49.533 $ 10.450 Direct materials Direct labor 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 5.20 2.40 Total $ 44.460 $ 9,880 $ 4,560 Direct materials (6,500 yards) Direct labor Variable manufacturing overhead $31.00 At standard, each set of covers should require 3.00 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, ze ro variance).) MacBook

1. Compute the material 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.

Answer 1

6890 F 6320U Answer Mateial Price Variance (AQ*AP)-(AQ*SP) Matrial Quanity Varaince (AQ*SP)-(SQ*SP) Labor rate Variance (AHAR)-(AH*SR) labor Efficiency Varaince (AH*SR)-(SH*SR) Variable Overhead Rate Variance (AHAR)-(AH*SR) Variable Overhead Efficiency Varaince (AH*SR)-(SH*SR) 1880 U 1500 F 1040 1040 U 660 F

7.90 Per Yard 3 Yards 5700 Yards 1900 Units 6500 Yards 6500 Yards 6.84 Per Yard Data Direct Material Standard Price ((23.70/3) Standard quantity Per unit Standard Quantity for Actual Output SQ Actual Output Actual Quantity Purchased AQP Actual Quanity Used AQ Actual Price of Material AP Direct Labor Standard Rate(10450/1045) SR Standard hours per unit (2090/1045) Standard Hours for Actual output SH Actual Output Actual hours Worked AH Actual Rate (9880/800) AR Varaible OH Standard Rate(4598/1045) SRI Standard hours per unit (2090/1045) Standard Hours for Actual output SHL Actual Output Actual hours Worked Actula Rate = ( 4560/800) AR 10 Per hour 0.5 hours 950 Hours 1900 Units 800 hours 12.35 Per hour 4.40 Per hour 0.50 hours 950 Hours 1900 Units 800 hours 5.70 Per hour