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 L040 hours each month to produce 2.080 sets of covers. The standard costs associated with this level of production are: Per Set Total of Covers Direct materials Direct labor Variable anufacturing everhead (hesed oe direct labor-hours) $40,540 $19.50 $7.200 3.50 $ 4.160 2.00 $25.00 During August, the factory worked only 600 direct labor-hours and produced 1800 sets of covers. The following actual costs were recorded during the month Per Set Direct materiala (5,000 yarda) Direct labor pegano beranaseg atesa Total of Covers 34,200 19.00 $4,660 3.70 4,140 2.30 $25.00 At standard, each set of covers should require 25 yards of material. Al of the materiais purchesed during the month were used in production. Required: 1Compute the materials price and quantty variances for August. 2. Compute the labor rate and efficiency variances for August. 3. Compute the varieble overhead rate and efficiency variances for Aucust
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 L040 hours each month to produce 2.080 sets of covers. The standard costs associated with this level of production are: Per Set Total of Covers Direct materials Direct labor Variable anufacturing everhead (hesed oe direct labor-hours) $40,540 $19.50 $7.200 3.50 $ 4.160 2.00 $25.00 During August, the factory worked only 600 direct labor-hours and produced 1800 sets of covers. The following actual costs were recorded during the month Per Set Direct materiala (5,000 yarda) Direct labor pegano beranaseg atesa Total of Covers 34,200 19.00 $4,660 3.70 4,140 2.30 $25.00 At standard, each set of covers should require 25 yards of material. Al of the materiais purchesed during the month were used in production. Required: 1Compute the materials price and quantty variances for August. 2. Compute the labor rate and efficiency variances for August. 3. Compute the varieble overhead rate and efficiency variances for Aucust
Essentials of Business Analytics (MindTap Course List)
2nd Edition
ISBN:9781305627734
Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson
Publisher:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson
Chapter13: Nonlinear Optimization Models
Section: Chapter Questions
Problem 8P: Andalus Furniture Company has two manufacturing plants, one at Aynor and another at Spartanburg. The...
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