Chapter 14, Problem 14.2P

Financial Accounting Question please provide correct answer

A company has $30 per unit in variable costs and $1,200,000 per year in fixed costs. Please need answer the general accounting question

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 1,060 hours each month to produce 2,120 sets of seat covers. The standard costs associated with this level of production are: Total Per Set of Covers Direct materials $ 43,460 $ 20.50 Direct labor $ 9,540 4.50 Variable manufacturing overhead (based on direct labor-hours) $ 4,664 2.20 $ 27.20 During August, the factory worked 500 direct labor-hours and produced 2,200 sets of covers. The following actual costs were recorded during the month: Direct materials (8,000 yards) Direct labor Total $ 44,000 Per Set of Covers $ 20.00 $ 10,340 Variable manufacturing overhead $ 5,500 4.70 2.50 $ 27.20 At standard, each set of covers should require 2.5 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.…