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e connect s", E Solved: Pr Connect M Your question was answe × × Secure https://newconnect.mheducation.com/flow/connect.html Chapter 10 Homework 6 Saved Help Save & Exit Submit Check my work 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. Accordling to the standards that have been set for the seat covers, the factory should work 1,045 hours each month to produce 2,090 sets of covers. The standard costs associated with this level of production are: 1.25 Per Set points Total of Covers Direct materials Direct labor Variable manufacturing overhead (based an 49,533 $23.70 $ 10,45e 5.00 eBook direct labor-hours) 4,5982.26 2.2e 30.90 During August, the factory worked only 800 direct labor-hours and produced 1,900 sets of covers. The following actual costs were recorded during the month: Per Set Total of Covers Direct materials (6,580 yards) Direct labor ariable manufacturing overhead 5 44,468 $23.40 $ 9,8885.20 4,5682.4 $31.86 At standard, each set of covers should require 3.0 yards of material. All of the materials purchased during the month were used in Mc Prey 21 of 21 , Next > Hill

Explanation / Answer

1. Material variance :

Material price variance = (standard price -actual price)actual quantity

= (7.9*6500-44460)

Material price variance = 6890 F

Material quantity variance = (standard quantity-actual quantity)standard price per unit

= (1900*3-6500)7.9

Material quantity variance = 6320 U

2) Labour variance :

Labour rate variance = (standard rate-actual rate) actual hours

= (10*800-9880)

Labour rate variance = 1880 U

Labour efficiency variance = (standard hour-actual hour)standard rate

= (1900*5-800)10

Labour efficiency variance = 1500 F

3) variable overhead variance :

variable overhead rate variance = (standard rate-actual rate) actual hours

= (4.40*800-4560)

Variable overhead rate variance = 1040 U

Vairable overhead efficiency variance = (standard hour-actual hour)standard rate

= (1900*.5-800)4.40

Variable overhead efficiency variance = 660 F

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