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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 1015 hours each month to produce 2,030 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 (6,400 yards) Direct labor Variable manufacturing overhead Total $ 59,276 $ 8,120 $ 3,857 During August, the factory worked 700 direct labor-hours and produced 1,500 sets of covers. The following actual costs were recorde during the month 1 Materials price variance 1 Matenals quantity variance 2 Labor rate variance 2 Labor efficiency variance 3 Vanable overhead rate variance 3 Variable overhead efficiency variance Per Set of Covers $29.20 4.00 Total $ 42,000 $.6,300 $3,150 1.90 $35.10 Per Set of Covers $28.00 4.20 2.10 $ 34.30 At standard, each set of covers should require 4.0 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... zero variance). Input all amounts as positive values. 4

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 1015 hours each month to produce 2,030 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 (6,400 yards) Direct labor Variable manufacturing overhead Total $ 59,276 $ 8,120 $ 3,857 During August, the factory worked 700 direct labor-hours and produced 1,500 sets of covers. The following actual costs were recorde during the month 1 Materials price variance 1 Matenals quantity variance 2 Labor rate variance 2 Labor efficiency variance 3 Vanable overhead rate variance 3 Variable overhead efficiency variance Per Set of Covers $29.20 4.00 Total $ 42,000 $.6,300 $3,150 1.90 $35.10 Per Set of Covers $28.00 4.20 2.10 $ 34.30 At standard, each set of covers should require 4.0 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... zero variance). Input all amounts as positive values. 4

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Ashavinbhai 

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 1015 hours each month to produce 2,030 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 (8,400 yards) Direct labor Variable manufacturing overhead Total $ 59,276 $ 8,120 $ 3,857 During August, the factory worked 700 direct labor-hours and produced 1,500 sets of covers. The following actual costs were recorde during the month Per Set of Covers Total $ 42,000 $ 6,300 $ 3,150 1 Materials price variance 1. Matenals quantity variance 2 Labor rate variance. $ 29.20 4.00 2 Labor efficiency variance 3 Vansble overhead rate variance 3 Variable overhead efficiency vanance 1.90 $35.10 At standard, each set of covers should require 4.0 yards of material. All of the materials purchased during the month were used in production) Per Set of Covers $ 28.00 4.20 2.10 $ 34.30 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. 4
Transcribed Image Text: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 1015 hours each month to produce 2,030 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 (8,400 yards) Direct labor Variable manufacturing overhead Total $ 59,276 $ 8,120 $ 3,857 During August, the factory worked 700 direct labor-hours and produced 1,500 sets of covers. The following actual costs were recorde during the month Per Set of Covers Total $ 42,000 $ 6,300 $ 3,150 1 Materials price variance 1. Matenals quantity variance 2 Labor rate variance. $ 29.20 4.00 2 Labor efficiency variance 3 Vansble overhead rate variance 3 Variable overhead efficiency vanance 1.90 $35.10 At standard, each set of covers should require 4.0 yards of material. All of the materials purchased during the month were used in production) Per Set of Covers $ 28.00 4.20 2.10 $ 34.30 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. 4
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