Marvel Parts, Inc., manufactures auto accessories. One of the company's products is a set of seat covers that can be adj

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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 car. The company has a standard cost system in
use for the 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:
Total
Per set of covers
Direct materials
$42,560
$22.40
Direct labor
$17,100
9.00
Variable manufacturing overhead (based on direct labor
hours)
$6,840
3.60
$35.00
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:
Total
Per set of covers
Direct materials (12,000 yards)
$45,600
$22.80
Direct labor
$18,200
9.10
Variable manufacturing overhead (based on direct labor
hours)
$7,000
3.50
$35.40
As standard, each 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: