2. Fender, which uses a standard cost system, manufactured 20,000 boat fenders during 2024, using 141,000 square feet of extruded vinyl purchased at $1.35 per square foot. Production required 430 direct labor hours that cost $15.50 per hour. The direct materials standard was seven square feet of vinyl per fender, at a standard cost of $1.40 per square foot. The labor standard was

0.025 direct labor hour per fender, at a standard cost of $14.50 per hour.

1. Compute the cost and efficiency variances for direct materials and direct labor. Does the pattern of variances suggest

Grand

Grand Fender's managers have been making trade-offs? Explain.

Begin with the cost variances. Select the required formulas, compute the cost variances for direct materials and direct labor, and identify whether each variance is favorable (F) or unfavorable (U).

Grant ander which standard est system manered 20.000 boot onders turno 2024. ing 141.000 fot of red vinyl purchased 51.35 per square foot Production required 430 direct labor hours to $15.50 per hour. The direct materials anderd won seven profeet of winy per ferder, ata andand cont of 140 per refoot The labor andard was 0025 direct labor hour per fender at tindard cost of $14.50 per hour Read the tegn with the most wanem. Seet he wound formen, compute the cout verances to crat will no direct box and develly whether each varnance in favorable or internasio (Ul. Verovatore net Acctu cont. A Obedread: sardand cost standard) Formula Variance Direct la costante Direct labor contre