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

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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