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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 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
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