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 1,230 hours each month to produce 2,050 sets of covers. The standard costs associated with this level of production are: Total Per Set of Covers Direct materials $ 27,675 $ 13.50 Direct labor $ 8,610 4.20 Variable manufacturing overhead (based on direct labor-hours) $ 4,920 2.40 $ 20.10 During August, the factory worked only 750 direct labor-hours and produced 1,500 sets of covers. The following actual costs were recorded during the month: Total Per Set of Covers Direct materials (3,900 yards) $ 19,500 $ 13.00 Direct labor $ 6,600 4.40 Variable manufacturing overhead $ 4,800 3.20 $ 20.60 At standard, each set of covers should require 1.8 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.)
Material Price Variance = (Standard Price – Actual Price)*Actual Quantity Purchased
= (7.5 – Actual Rate)*3,900
= 7.5*3900 – 19,500
= $9,750 Favorable
Material Quantity Variance = (Standard Quantity – Actual Quantity Used)*Standard Price
= (1,500*1.8 – 3,900)*7.5
= $9,000 Unfavorable
Labor Rate Variance = (Standard Rate – Actual Rate)*Actual Hours
= (4.2*1.66666 – Actual Rate)*750
= $1,350 Unfavorable
Efficiency Variance = (standard hours – actual hours)*Standard Rate
= (1500/1.66666 – 750)*7
= $1,050 favorable
Variable overhead rate variance = (Standard Rate – Actual Rate)*Actual Hours
= (2.4*1.6666 – Actual Rate)*750
= $1,800 U
Efficiency Variance = (standard hours – actual hours)*Standard Rate
= (150)*4
= $600 F
Marvel Parts, Inc., manufactures auto accessories. One of the company’s products is a set of seat...
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 1,230 hours each month to produce 2,050 sets of covers. The standard costs associated with this level of production are: Total $ 27,675...
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 1,230 hours each month to produce 2,050 sets of covers. The standard costs associated with this level of production are: Per Set of...
Marvel Parts, Inc., manufactures auto accessories. One of the company's products is a set of seat coversat can be adjusted to fit nearly any small car. The company has a standard cost system in use for all of its products. According tot standards that have been set for the seat covers, the factory should work 1,230 hours each month to produce 2,050 sets of covers. ine standard costs associated with this level of production are: Direct materials Direct labor Variable...
: 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 1,230 hours each month to produce 2.050 sets of covers. The standard C associated with this level of production are: Per Set...
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 1,230 hours each month to produce 2,050 sets of covers. The standard costs associated with this level of production...
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 1,000 hours each month to produce 2,000 sets of covers. The standard costs associated with this level of production are: Total Per Set...
Check my 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 1,230 hours each month to produce 2,050 sets of covers. The standard costs associated with this level of production are: Total...
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 1,035 hours each month to produce 2,070 sets of covers. The standard costs associated with this level of production are: Total Per Set...
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 1,035 hours each month to produce 2,070 sets of covers. The standard costs associated with this level of production are: Total Per Set...
He Saved ework Marvel Parts, Inc. manufactures auto accessories. One of the company's products is a set of seat covers that can be adjusted to fit 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 1,230 hours each month to produce 2,050 sets of covers. The standard costs associated with this level of production are: Per Set Direct...