Marvel Parts, Incorporated, manufactures auto accessories including a set of seat covers that can be adjusted According to its standards, the factory should work 630 hours each month to produce 2,100 sets of seat covers. The standard associated with this level of production are: Total Direct materials $ 38,640 Per Set of Covers $ 18.40 Direct labor $ 6,300 3.00 Variable manufacturing overhead (based on direct labor-hours) $ 3,150 1.50 $ 22.90 During August, the factory worked 500 direct labor-hours and produced 2,000 sets of covers. The following actual costs were recorded during the month: Direct materials (5,000 yards) Direct labor Variable manufacturing overhead Total $ 36,000 $ 6,400 $ 4,400 Per Set of Covers $ 18.00 3.20 2.20 $ 23.40 At standard, each set of covers should require 2.3 yards of material. All of the materials purchased during the month were used i 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.

Marvel Parts, Incorporated, manufactures auto accessories including a set of seat covers that can be adjusted According to its standards, the factory should work 630 hours each month to produce 2,100 sets of seat covers. The standard associated with this level of production are: Total Direct materials $ 38,640 Per Set of Covers $ 18.40 Direct labor $ 6,300 3.00 Variable manufacturing overhead (based on direct labor-hours) $ 3,150 1.50 $ 22.90 During August, the factory worked 500 direct labor-hours and produced 2,000 sets of covers. The following actual costs were recorded during the month: Direct materials (5,000 yards) Direct labor Variable manufacturing overhead Total $ 36,000 $ 6,400 $ 4,400 Per Set of Covers $ 18.00 3.20 2.20 $ 23.40 At standard, each set of covers should require 2.3 yards of material. All of the materials purchased during the month were used i 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.

Name: None Marvel Parts, Incorporated, manufactures auto accessories includi
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Description: None Marvel Parts, Incorporated, manufactures auto accessories including a set of seat covers that can be adjusted to fit most cars.According to its standards, the factory should work 630 hours each month to produce 2,100 sets of seat covers. The sta

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 2PB: Five Card Draw manufactures and sells 10,000 units of Aces, which retails for $200, and 8,000 units...

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