Marvel Parts, Inc., manufactures auto accessories. One of the company's products is a set of seat covers that can be adjusted to fitnearly any small car. The company has a standard cost system in use for all of its products. According to the standards that have beenset for the seat covers, the factory should work 1,040 hours each month to produce 2,080 sets of covers. The standard costsassociated with this level of production are:Per Setof Covers$40,540 $19.503.50TotalDirect materialeDirect laborVariable manufacturing overhead (basedon direct labor-hourn)7.2002.00$25.00E4.160During August, the factory worked only 600 direct iabor-hours and produced 1,800 sets of covers. The folowing actual costs wererecorded during the month:Per Setof Covers34,200 19.003.702.30$25.00totalDirect naterials (5,000 yarde)Direet laborVariable manufacturing overhead$6,6404,140At standard, each set of covers should require 2.5 yards of material. All of the materiais purchased during the month were used inproduction.Required1. Compute the materials price and quantity variances for August.2. Compute the labor rate and efficiency variances for August3. Compute the veriable overhead rate and efficiency variances for August.

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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 L040 hours each month to produce 2.080 sets of covers. The standard costs associated with this level of production are: Per Set Total of Covers Direct materials Direct labor Variable anufacturing everhead (hesed oe direct labor-hours) $40,540 $19.50 $7.200 3.50 $ 4.160 2.00 $25.00 During August, the factory worked only 600 direct labor-hours and produced 1800 sets of covers. The following actual costs were recorded during the month Per Set Direct materiala (5,000 yarda) Direct labor pegano beranaseg atesa Total of Covers 34,200 19.00 $4,660 3.70 4,140 2.30 $25.00 At standard, each set of covers should require 25 yards of material. Al of the materiais purchesed during the month were used in production. Required: 1Compute the materials price and quantty variances for August. 2. Compute the labor rate and efficiency variances for August. 3. Compute the varieble overhead rate and efficiency variances for Aucust

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 L040 hours each month to produce 2.080 sets of covers. The standard costs associated with this level of production are: Per Set Total of Covers Direct materials Direct labor Variable anufacturing everhead (hesed oe direct labor-hours) $40,540 $19.50 $7.200 3.50 $ 4.160 2.00 $25.00 During August, the factory worked only 600 direct labor-hours and produced 1800 sets of covers. The following actual costs were recorded during the month Per Set Direct materiala (5,000 yarda) Direct labor pegano beranaseg atesa Total of Covers 34,200 19.00 $4,660 3.70 4,140 2.30 $25.00 At standard, each set of covers should require 25 yards of material. Al of the materiais purchesed during the month were used in production. Required: 1Compute the materials price and quantty variances for August. 2. Compute the labor rate and efficiency variances for August. 3. Compute the varieble overhead rate and efficiency variances for Aucust

FINANCIAL ACCOUNTING

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ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Concept explainers

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.

Question

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 1,040 hours each month to produce 2,080 sets of covers. The standard costs
associated with this level of production are:
Per Set
of Covers
$40,540 $19.50
3.50
Total
Direct materiale
Direct labor
Variable manufacturing overhead (based
on direct labor-hourn)
7.200
2.00
$25.00
E4.160
During August, the factory worked only 600 direct iabor-hours and produced 1,800 sets of covers. The folowing actual costs were
recorded during the month:
Per Set
of Covers
34,200 19.00
3.70
2.30
$25.00
total
Direct naterials (5,000 yarde)
Direet labor
Variable manufacturing overhead
$6,640
4,140
At standard, each set of covers should require 2.5 yards of material. All of the materiais 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 veriable overhead rate and efficiency variances for August.

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Marvel Parts, Incorporated, 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 1,040 hours each month to produce 2,080 sets of covers. The standard costs associated with this level of production are: Direct materials. Direct labor Variable manufacturing overhead (based on direct labor-hours) Direct materials (5,000 yards) Direct labor Variable manufacturing overhead Total $ 40,560 $ 7,280 $ 4,160 During August, the factory worked only 600 direct labor-hours and produced 1,800 sets of covers. The following actual costs were recorded during the month: Per Set of Covers $19.50 3.50 Total $ 34,200 $ 6,660 $ 4,140 2.00 $ 25.00 1. Materials price variance 1. Materials quantity variance 2. Labor rate variance 2. Labor efficiency variance 3. Variable…