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Marvel Parts, Inc., manufactures auto accessories. One of the company's products is a set of seat covers that can be adjusted to fit nearly any small...

P11-18 on page 485 of the 13th edition Managerial Accounting by Garrison, Noreen and Brewer
Marvel Parts, Inc., 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 2,850 hours each month to produce 1,900 sets of covers. The standard costs  associated with this level of production are: During August, the factory worked only 2,800 direct labor-hours and produced 2,000 sets of covers. The following actual costs were  recorded during the month: AT standard, each set of covers should require 5.6 yards of material. All of the materials purchased during the month were used in  production. Required: Compute the following variances for August: 1. The direct materials price and quantity variances. 2. The direct labor rate and efficiency variances. 3. The variable overhead rate and efficiencyvariances.
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