Please do not give solution in image format thanku 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 1,020 hours each month to produce 2,040 sets of covers. The standard costs associatedwith this level of production are:Direct materialsDirect laborVariable manufacturing overhead(based on direct labor-hours)Per SetTotal ofCovers$bŚ9,180$ 2,448Direct materials (9,100 yards)$$Variable manufacturing overhead $Direct laborTotal37,740 $ 18.50During August, the factory worked only 1,000 direct labor-hours and produced 2,900 sets of covers. The following actual costs wererecorded during the month:4.50Per Setof Covers52,78013,6304,6401.20$24.20$ 18.204.701.60$ 24.50At standard, each set of covers should require 2.5 yards of material. All of the materials purchased during the month were used inproduction.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.

Material price variance = (SP - AP) * AQ Material quantity variance = (SQ - AQ) * SP Direct labor…

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 1,020 hours each month to produce 2,040 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 (9,100 yards) Direct labor Total $ $ Variable manufacturing overhead $ $ $ $ Total Per Set of Covers 37,740 9,180 2,448 During August, the factory worked only 1,000 direct labor-hours and produced 2,900 sets of covers. The following actual costs were recorded during the month: Per Set of Covers 52,780 13,630 $ 18.50 4,640 4.50 1.20 $ 24.20 $18.20 4.70 1.60 $ 24.50