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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 980 hours each month to produce 1.960 sets of covers. The standard costs associated with this level of production are: Per Set of Covers $ 16.50 Total Direct aaterlals oirect labor Varlable manufecturing overhead (based on direct labor hours) $32,340 $6,00 3.50 $1,0 1.00 $ 21.00 During August, the factory worked only 1,000 direct labor-hours and produced 2100 sets of covers. The following actual costs were recorded during the month Per Set of Covers $ 16.20 3.70 1.90 $ 21.00 Total Direct aterlals (6,000 yards) Oirect labor $34,020 $7,770 $3,990 Varlable manufacturing overhead At standard, each set of covers should require 2.5 yards of material. All of the materials purchased during the month were uted 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 (Indicete the effect of each verience by selecting " for fevoreble, "U" for unfevoreble, and "None for no effect (e zero verience). Input all amounts as positive values) 1. Materials price variance 1 Materials quanity variance 4950U 770U 350 2. Labor rate variance 2 Labor eficiency variance 3 Variable overhead rate variance EVariahle evertead elficiency varlance

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 980 hours each month to produce 1.960 sets of covers. The standard costs associated with this level of production are: Per Set of Covers $ 16.50 Total Direct aaterlals oirect labor Varlable manufecturing overhead (based on direct labor hours) $32,340 $6,00 3.50 $1,0 1.00 $ 21.00 During August, the factory worked only 1,000 direct labor-hours and produced 2100 sets of covers. The following actual costs were recorded during the month Per Set of Covers $ 16.20 3.70 1.90 $ 21.00 Total Direct aterlals (6,000 yards) Oirect labor $34,020 $7,770 $3,990 Varlable manufacturing overhead At standard, each set of covers should require 2.5 yards of material. All of the materials purchased during the month were uted 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 (Indicete the effect of each verience by selecting " for fevoreble, "U" for unfevoreble, and "None for no effect (e zero verience). Input all amounts as positive values) 1. Materials price variance 1 Materials quanity variance 4950U 770U 350 2. Labor rate variance 2 Labor eficiency variance 3 Variable overhead rate variance EVariahle evertead elficiency varlance

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter8: Budgeting
Section: Chapter Questions
Problem 4CMA: Krouse Company produces two products, forged putter heads and laminated putter heads, which are sold...
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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 980 hours each month to produce 1.960 sets of covers. The standard costs associated with this level of production are: Per Set of Covers $ 16.50 3.50 Total Direct materials Direct labor Varlable manufacturing averhead (based on direct labor-hours) $ 32,340 $6,860 $1,940 1.00 $ 21.00 During August, the factory worked only 1,000 direct labor-hours and produced 2100 sets of covers. The following actual costs were recorded during the month: Per Set of Total Covers Direct materlals (6,000 yards) Direct labor Variable manufacturing overhead $ 34,020 $7,770 $3,990 $ 16.20 3.70 1.90 $ 21.00 At standard, each set of covers should require 25 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. (Indicate the effect of each verience by selecting "F for favoreble, "U" for unfavorable, and "None" for no effect (Le, zero variance). Input all amounts as positive values.) 1. Materials price variance 1. Materials quantity variance 4.950u 770U 350 2 Labor rate varlance 2. Labor efficiency variance 3. Variable overhead rate variance 3. Variable overhead efficiency variance
Transcribed Image Text: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 980 hours each month to produce 1.960 sets of covers. The standard costs associated with this level of production are: Per Set of Covers $ 16.50 3.50 Total Direct materials Direct labor Varlable manufacturing averhead (based on direct labor-hours) $ 32,340 $6,860 $1,940 1.00 $ 21.00 During August, the factory worked only 1,000 direct labor-hours and produced 2100 sets of covers. The following actual costs were recorded during the month: Per Set of Total Covers Direct materlals (6,000 yards) Direct labor Variable manufacturing overhead $ 34,020 $7,770 $3,990 $ 16.20 3.70 1.90 $ 21.00 At standard, each set of covers should require 25 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. (Indicate the effect of each verience by selecting "F for favoreble, "U" for unfavorable, and "None" for no effect (Le, zero variance). Input all amounts as positive values.) 1. Materials price variance 1. Materials quantity variance 4.950u 770U 350 2 Labor rate varlance 2. Labor efficiency variance 3. Variable overhead rate variance 3. Variable overhead efficiency variance
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