Marvel Parts, Incorporated, manufactures auto accessories. One of the company's products is a set of seat covers that can be a to fit nearly any small car. The company has a standard cost system in use for all of its products. According to the standards tha been set for the seat covers, the factory should work 1,065 hours each month to produce 2,130 sets of covers. The standard co associated with this level of production are: Direct materials Direct labor Variable manufacturing overhead (based on direct labor-hours) Total $ 35,358 $ 8,520 $ 3,195 Direct materials (6,000 yards) Direct labor Variable manufacturing overhead Per Set of Covers $ 16.60 4.00 During August, the factory worked only 1,050 direct labor-hours and produced 2,700 sets of covers. The following actual costs recorded during the month: Total $ 43,740 $ 11,340 $ 5,670 1.50 $ 22.10 Per Set of Covers $ 16.20 4.20 2.10 $ 22.50

Marvel Parts, Incorporated, manufactures auto accessories. One of the company's products is a set of seat covers that can be a to fit nearly any small car. The company has a standard cost system in use for all of its products. According to the standards tha been set for the seat covers, the factory should work 1,065 hours each month to produce 2,130 sets of covers. The standard co associated with this level of production are: Direct materials Direct labor Variable manufacturing overhead (based on direct labor-hours) Total $ 35,358 $ 8,520 $ 3,195 Direct materials (6,000 yards) Direct labor Variable manufacturing overhead Per Set of Covers $ 16.60 4.00 During August, the factory worked only 1,050 direct labor-hours and produced 2,700 sets of covers. The following actual costs recorded during the month: Total $ 43,740 $ 11,340 $ 5,670 1.50 $ 22.10 Per Set of Covers $ 16.20 4.20 2.10 $ 22.50

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter8: Standard Costs And Variances

Section: Chapter Questions

Problem 2EB: Salley is developing material and labor standards for her company. She finds that it costs $0.55 per...

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Marvel Parts, Incorporated, 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 1,010 hours each month to produce 2,020 sets of covers. The standard costs associated with this level of production are: Direct materials Direct labor Variable manufacturing overhead (based on direct labor-hours) Direct materials (8,100 yards) Direct labor Variable manufacturing overhead Total $36,360 $7,070 $ 3,030 During August, the factory worked only 1,080 direct labor-hours and produced 2,700 sets of covers. The following actual costs were recorded during the month: Per Set of Covers $18.00 3.50 Total $ 46,980 $ 9,990 $ 4,590 1. Materials price variance 1. Materials quantity variance 2. Labor rate variance 1.50 $23.00 2. Labor efficiency variance 3. Variable…
Marvel Parts, Incorporated, 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 1,005 hours each month to produce 2,010 sets of covers. The standard costs associated with this level of production are: Direct materials Direct labor Variable manufacturing overhead (based on direct labor-hours) Direct materials (6,000 yards) Direct labor Variable manufacturing overhead Total $28,542 $ 8,040 $ 3,618 During August, the factory worked only 1,200 direct labor-hours and produced 2,600 sets of covers. The following actual costs were recorded during the month: Per Set of Covers $ 14.20 4.00 Total $ 35,100 $ 10,920 $ 5,460 1. Materials price variance 1. Materials quantity variance 2. Labor rate variance 1.80 $ 20.00 2. Labor efficiency variance 3. Variable…
Marvel Parts, Incorporated, 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 1,045 hours each month to produce 2,090 sets of covers. The standard costs associated with this level of production are: Direct materials Direct labor Variable manufacturing overhead (based on direct labor-hours) Direct materials (6,500 yards) Direct labor Variable manufacturing overhead Total $ 49,533 $ 10,450 $ 4,598 1. Materials price variance 1. Materials quantity variance 2. Labor rate variance 2. Labor efficiency variance 3. Variable overhead rate variance 3. Variable overhead efficiency variance Per Set of Covers $ During August, the factory worked only 800 direct labor-hours and produced 1,900 sets of covers. The following actual costs were recorded during…
Marvel Parts, Incorporated, 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 uses a standard cost system for all of its products. According to the standards that have been set for the seat covers, the factory should work 1,020 hours each month to produce 2,040 sets of covers. The standard costs associated with this level of production are: Total Per Set of Covers Direct materials $ 37,740 $ 18.50 Direct labor $ 9,180 4.50 Variable manufacturing overhead (based on direct labor-hours) $ 2,448 1.20 $ 24.20 During August, the factory worked only 1,000 direct labor-hours and produced 2,900 sets of covers. The following actual costs were recorded during the month: Total Per Set of Covers Direct materials (9,100 yards) $ 52,780 $ 18.20 Direct labor $ 13,630 4.70 Variable manufacturing overhead $ 4,640 1.60 $ 24.50 At standard, each set of covers…
Marvel Parts, Ic., 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 1,060 hours each month to produce 2,120 sets of covers. The standard costs associated with this level of production are: Per Set Total of Covers $ 43,460 $ 9,540 Direct materials $20.50 Direct labor 4.50 Variable manufacturing overhead (based on direct labor-hours) $ 4,664 2.20 $27.20 During August, the factory worked only 500 direct labor-hours and produced 2,200 sets of covers. The following actual costs were recorded during the month: Per Set of Covers $20.00 Total Direct materials (8,000 yards) Direct labor $ 44,000 $ 10,340 $ 5,500 4.70 Variable manufacturing overhead 2.50 $27.20 At standard, each set of covers should require 2.5 yards of material. All of the materials…