**Marvel Parts, Incorporated: Cost Analysis for Seat Cover Production**Marvel Parts, Incorporated, specializes in manufacturing auto accessories, including adjustable seat covers. The organization has set production standards and cost allocations for efficiency and budgeting purposes. **Standard Costs:**To manufacture 1,900 sets of seat covers, the factory is expected to operate for 2,850 hours per month. The standard cost structure includes:- **Direct Materials:** - Total: $42,560 - Per Set of Covers: $22.40- **Direct Labor:** - Total: $51,300 - Per Set of Covers: $27.00- **Variable Manufacturing Overhead:** - Total: $6,840 - Based on Direct Labor-Hours: $3.60**Total Standard Cost Per Set of Covers:** $53.00**Actual Costs for August:**In August, the factory functioned for 2,800 direct labor-hours and produced 2,000 sets of seat covers. The actual costs recorded were:- **Direct Materials (12,000 yards):** - Total: $45,600 - Per Set of Covers: $22.80- **Direct Labor:** - Total: $49,000 - Per Set of Covers: $24.50- **Variable Manufacturing Overhead:** - Total: $7,000 - Based on Direct Labor-Hours: $3.50**Total Actual Cost Per Set of Covers:** $50.80At the standard, each set of covers should require 5.6 yards of material. All purchased materials were used in production during the month.**Required Analysis:**1. **Materials Price and Quantity Variances for August:**2. **Labor Rate and Efficiency Variances for August:**3. **Variable Overhead Rate and Efficiency Variances for August:****Note:** Calculations should not include intermediate rounding. Variances should be categorized as "F" for favorable, "U" for unfavorable, and "None" for no effect (zero variance). Input all amounts as positive values.

Name: **Marvel Parts, Incorporated: Cost Analysis for Seat Cover Production
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Description: **Marvel Parts, Incorporated: Cost Analysis for Seat Cover Production**Marvel Parts, Incorporated, specializes in manufacturing auto accessories, including adjustable seat covers. The organization has set production standards and cost allocations fo

Variances in standard costing means, the deviation of actual cost from budgeted cost, in other…

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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 2,850 hours each month to produce 1,900 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 $ 42,560 $ 51,300 $ 6,840 Direct materials (12,000 yards) Direct labor Variable manufacturing overhead Per Set of Covers Total $ 45,600 $ 49,000 $ 7,000 $ 22.40 27.00 During August, the factory worked 2,800 direct labor-hours and produced 2,000 sets of covers. The following actual costs were recorded during the month: 3.60 $ 53.00 Per Set of Covers $22.80 24.50 3.50 $ 50.80

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 2,850 hours each month to produce 1,900 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 $ 42,560 $ 51,300 $ 6,840 Direct materials (12,000 yards) Direct labor Variable manufacturing overhead Per Set of Covers Total $ 45,600 $ 49,000 $ 7,000 $ 22.40 27.00 During August, the factory worked 2,800 direct labor-hours and produced 2,000 sets of covers. The following actual costs were recorded during the month: 3.60 $ 53.00 Per Set of Covers $22.80 24.50 3.50 $ 50.80

FINANCIAL ACCOUNTING

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ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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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 1,015 hours each month to produce 2,030 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 (8,400 yards) Direct labor Variable manufacturing overhead Total $ 59,276 $ 8,120 $ 3,857 During August, the factory worked only 700 direct labor-hours and produced 1,500 sets of covers. The following actual costs were recorded during the month: Per Set of Covers $ 29.20 4.00 1.90 $ 35.10 Total $ 42,000 $ 6,300 $ 3,150 1. Materials price variance 1. Materials quantity variance 2. Labor rate variance 2. Labor efficiency variance 3. Variable…
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