Hi, Any help with this problem is greatly apprectiated. Ive seen other examples

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Hi, Any help with this problem is greatly apprectiated. Ive seen other examples with different numbersbut continue to get the same answer. It always ends up wrong. Any help is appreciated, thanks!

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 780 hours each month to produce 1,560 sets of covers. The standard costs associated with this level of production are:

     
   

   Variable manufacturing overhead
(based on direct labor-hours)

$31.75   

     

During August, the factory worked only 820 direct labor-hours and produced 1,700 sets of covers. The following actual costs were recorded during the month:

  
   

31.50   

     

At standard, each set of covers should require 4 yards of material. All of the materials purchased during the month were used in production.

  
   

Compute the direct materials price and quantity variances for August (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. Round your answers to the nearest dollar amount. Omit the "$" sign in your response.):

  
   

  
   

Compute the direct labor rate and efficiency variances for August (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. Round your answers to the nearest dollar amount. Omit the "$" sign in your response.):

  
   

  
   

Compute the variable overhead rate and efficiency variances for August(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. Omit the "$" sign in your response.):

  
    

Total Per Set
of Covers   Direct materials $40,560   $26.00      Direct labor $6,630   4.25   

   Variable manufacturing overhead
(based on direct labor-hours)

$2,340   1.50   

$31.75   

Explanation / Answer

Requirement 1

Materials price variance

DM Price Variance = ( SP ? AP )

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