Mason Fender is a competitor of Matthews Fender from Exercise E23-19. Mason

Fender also uses a standard cost system and provides the following information:

Static budget variable overhead ........................ $ 2,300

Static budget fixed overhead ......................... $ 23,000

Static budget direct labor hours .................... 575 hours

Static budget number of units ................... 23,000 units

Standard direct labor hours ......... 0.025 hours per fender

Mason Fender allocates manufacturing overhead to production based on standard direct labor hours. Mason Fender reported the following actual results for 2018: actual number of fenders produced, 20,000; actual variable overhead, $5,350; actual fixed overhead, $26,000; actual direct labor hours, 460.

Requirements
1. Compute the overhead variances for the year: variable overhead cost variance, variable overhead efficiency variance, fixed overhead cost variance, and fixed overhead volume variance.
2. Explain why the variances are favorable or unfavorable.

Refer in Exercise E23-19,

Matthews Fender, which uses a standard cost system, manufactured 20,000 boat fenders during 2018, using 143,000 square feet of extruded vinyl purchased at $1.30 per square foot. Production required 400 direct labor hours that cost $16.00 per hour. The direct materials standard was seven square feet of vinyl per fender, at a standard cost of $1.35 per square foot. The labor standard was 0.028 direct labor hour per fender, at a standard cost of $15.00 per hour.

Compute the cost and efficiency variances for direct materials and direct labor. Does the pattern of variances suggest Matthews Fender's managers have been making tradeoffs? Explain.