Question

Marvel Parts, Inc, manufactures auto accessories One of the company's products is aa set of seat covers that can be adjusted to t 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 1,005 hours each month to produce 2.010 sets of covers The standard costs associated with this level of production are Drect matenials Direct labor Vanable manufacturing overhead (based on drect labor hours) Total $28.642 S 8040 Per Set of Covers $14 20 4.00 180 $20.00 S 3618 During August, the factory worked only 1.200 direct labor-hours and produced 2.600 sets of covers The folowing actual costs were recorded duing the month Total $35.100 $10,920 $ 5,460 Per Set of Covers $13 50 420 2.10 $19.80 Direct materals (6.000 yards) Direct labor Variable manuacturing overhead were used n production At standard, each set of covers should require 2 00 yards of material All of the matenals purchased dunng the mon

Answer 1

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Material Auautianiance Sdaudod Buauti 2 yardl X 2o0 5200arel 6oo0 yard Actual Buauli ty Materiaul Ruauukity arince Stand ard Bueuy Ackaul duauity Staudadpice (5200yod-pooyad)x7.10 x $7.10 -8 o0 y ard $5,680 U

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la bor E4fesency Vanmce l0oshours SLaudand Hour * 2600 2010 0.50 hour 2400 ం4ours Actuaul Hour 200 hour labor E#ficieucy Vanicnce = tandend Hour 13 00 Actual Hourx Sandandl Route e Per hou 12 00 100 hours x_$ 8 per houn 800

Sol.3) Variable DveaheadRae anicae $3618 1ooShour s Standare! Roure Per heur $ 3.60 Per hour $ S460 Actuaul Rauteer hour 1200 hours 4.55 Per houx ariable Dver head Rate Varian ce -Standard Rate -Actead Roex Aetuaul Htour's 4.5Sx1200 hour's 3.60 200 hovr's 0.9s $1,140 U

Vamiable Drentead Efecieny aniamee 100s hour Stemaland Hour 2600 2010 0.So hour x 2600 1,3oo hours Aetuad Hour 12-00 hou Vaniable Ovrnhead Eieieucy Vaican Ce Standland our Actuaul HourX Steudand Rate 1200 haurs x$360 Perheuz 1300 hour TOo hour's x $3.60 $360 f

Wo leivg alotes ) हालdd Price Pe d 2 StanaladPrice Per set o Coren Materialrequired f each 6etog covex $ 14.20 ্च न.10 P४ 2) labeurRate Yarieme Sandand Rae Per hour. > Smdard Direet labour CusL Steualanel tour orlea $ 8040 toos houn

(3 ) labour eftuieyVacicuace Steuolan|tour Sdeandl tourDorkudActuodPduetion Sdeudand Prastuctiba 100shouis 2010 Seto Cover 2600 Seedf Cover D. So Leds/sesofCoer X 2600 Sel.borer అ ఓ