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 1,005 hours each month to produce 2,010 sets of seat 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 (6,000 yards) Direct labor Variable manufacturing overhead Total $ 28,542 $8,040 $ 3,618 At standa production. During August, the factory worked 1,200 direct labor-hours and produced 2,600 sets of covers. The following actual costs were recorded during the month: Per Set of Covers $ 14.20 4.00 Total $ 35,100 $ 10,920 $5,460 1.80 $ 20.00 Per Set of Covers $ 13.50 4.20 2.10 $19.80 each set of covers should require 2.0 yards of material. All of the materials purchased during the month were used in 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. Note: Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.
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 1,005 hours each month to produce 2,010 sets of seat 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 (6,000 yards) Direct labor Variable manufacturing overhead Total $ 28,542 $8,040 $ 3,618 At standa production. During August, the factory worked 1,200 direct labor-hours and produced 2,600 sets of covers. The following actual costs were recorded during the month: Per Set of Covers $ 14.20 4.00 Total $ 35,100 $ 10,920 $5,460 1.80 $ 20.00 Per Set of Covers $ 13.50 4.20 2.10 $19.80 each set of covers should require 2.0 yards of material. All of the materials purchased during the month were used in 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. Note: Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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![Problem 10-9 (Algo) Comprehensive Variance Analysis [LO10-1, LO10-2, LO10-3]
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 1,005 hours each month to produce 2,010 sets of seat covers. The standard costs
associated with this level of production are:
Direct materials
Direct labor
Variable manufacturing overhead (based
on direct labor-hours)
Total
$28,542
$ 8,040
$ 3,618
Direct materials (6,000 yards)
Direct labor
Variable manufacturing overhead
Per Set of
Covers
$14.20
4.00
During August, the factory worked 1,200 direct labor-hours and produced 2,600 sets of covers. The following actual costs were
recorded during the month:
Total
$ 35, 100
$ 10,920
$ 5,460
4
1.80
$ 20.00
Per Set of
Covers
$13.50
4.20
2.10
$19.80
At standard, each set of covers should require 2.0 yards of material. All of the materials 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 variable overhead rate and efficiency variances for August.
Note: Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, "U" for
unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc9737efd-391f-457a-98f6-aa044a0527f1%2Fc40ccf9b-a232-4a26-ad6e-57412aea6800%2F830c8ye_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Problem 10-9 (Algo) Comprehensive Variance Analysis [LO10-1, LO10-2, LO10-3]
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 1,005 hours each month to produce 2,010 sets of seat covers. The standard costs
associated with this level of production are:
Direct materials
Direct labor
Variable manufacturing overhead (based
on direct labor-hours)
Total
$28,542
$ 8,040
$ 3,618
Direct materials (6,000 yards)
Direct labor
Variable manufacturing overhead
Per Set of
Covers
$14.20
4.00
During August, the factory worked 1,200 direct labor-hours and produced 2,600 sets of covers. The following actual costs were
recorded during the month:
Total
$ 35, 100
$ 10,920
$ 5,460
4
1.80
$ 20.00
Per Set of
Covers
$13.50
4.20
2.10
$19.80
At standard, each set of covers should require 2.0 yards of material. All of the materials 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 variable overhead rate and efficiency variances for August.
Note: Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, "U" for
unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.
Transcribed Image Text:Direct materials (6,000 yards)
Direct labor
Variable manufacturing overhead
IULAL
1. Materials price variance
1. Materials quantity variance
2. Labor rate variance
2. Labor efficiency variance
3. Variable overhead rate variance
3. Variable overhead efficiency variance
$ 35,100
$ 10,920
$ 5,460
Covers
$13.50
4.20
2.10
$19.80
At standard, each set of covers should require 2.0 yards of material. All of the materials 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 variable overhead rate and efficiency variances for August.
Note: Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, "U" for
unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.
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