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 1,075 hours each month to produce 2,150 sets of covers. the standard costs associated with this level of production are: total per set of covers direct materials $ 54,825 $ 25.50 direct labor $ 10,750 5.00 variable manufacturing overhead (based on direct labor-hours) $ 5,375 2.50 $ 33.00 during august, the factory worked only 800 direct labor-hours and produced 2,500 sets of covers. the following actual costs were recorded during the month: total per set of covers direct materials (12,500 yards) $ 58,750 $ 23.50 direct labor $ 13,000 5.20 variable manufacturing overhead $ 7,000 2.80 $ 31.50 at standard, each set of covers should require 3.0 yards of material. all of the materials purchased during the month were used in production. required: 1. compute the materials price and quantity variances for august. 2. compute the labor rate and efficiency variances for august. 3. compute the variable overhead rate and efficiency variances for august.

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of the three mortgage options that demarco and tanya have to choose from, the balloon payment mortgage would be their best option, over adjustable payment and fixed payment plans.ultimately, the balloon payment plan would save demarco and tanya overall, in interest, would cost less monthly, and they would only have to make these payments for 8 years, opposing to 30 years for adjustable or fixed payment plans. 

overall, demarco and tanya would save $80,811 if they chose balloon payments over fixed payments, and would save $116,711 if they choose balloon payments over adjustable payments. benefits with choosing fixed payments over adjustable payments is that, in the end, the payments will still be $836.30 a month, while with adjustable payments, the initial monthly payments will be $763.38 to $1082.70 a month, ultimately leading to a more costly purchase. benefits with choosing fixed payments over balloon payments are not present. benefits in choosing adjustable payments over is that it has a lower interest rate, and starts with lower monthly payments initially. benefits in choosing adjustable payments over balloon payments include a lower interest rate, and lower initial monthly payments. benefits in choosing balloon payments over fixed payments include lower interest rates, lower overall price, lower monthly payments, takes less time to pay off, and does not require a downpayment. benefits in choosing balloon payments over adjustable payments include, lower monthly payments (when averaged), takes less time to pay off, and lower overall price.

hence, option c, balloon payments, is the best option for demarco and tanya to make this purchase, for it will save them a minimum of $80811, and a maximum of $116,711.