6-6/19 (diregard bumbers in chart. chart there for referance)

Superior Fender wich uses a standard cost system, manufactured 20.000 boat fenders during 2024 using 145.000 square foot of extruded vinyl perchased at 51 35 per square foot Production required 430 direct labor hours that cost 513 50 por hour. The direct materials standard was seven square feet of vinyl por fender, at a standard cost of $1.40 per square fool. The labor standard was 0 026 dred labor hour perfonder, at a standard cost of $12.50 per hout Read the recurrent Begin with the cont vortances Select the required forretan, compdo the cont variances for direct materials and direct labor, and idently whether each variance in tavorable (F) or unfavorable UX, Vackruvators used Aaco AD anty, FOHFxd Overhead: SC Wind cost sandard quantity Formula Variance Direct materials cost variance Direct labor cost variance Direct Direct Labor Materials per sq. ft. per hr. per sq. ft. per hr. Actual cost (AC) I Standard cost (SC) Actual quantity (AQ) Standard quantity (SQ) sq. ft. hrs sq. ft. hrs Variance Direct materials cost variance = Direct labor cost variance Formula (AC-SC) AQ=( $ 1.10 $ 1.15 )* 146,000 = (AC-SC) *AQ = ( $13.50 - $12.50 ) 430 Variance Formula Direct materials efficiency variance = (AQ - SQ) SC = ( 146,000 Direct labor efficiency variance = (AQ - SQ) > SC =( 430 140,000) * $ 1.15 540 ) * $ 12.50 = Does the pattern of variances suggest Great Fender's managers have been making trade-offs? Explain. Cost Variance Efficiency Variance Direct materials $ 7,300 F Direct materials $ 6,900 U Direct labor ws $ 430 U Direct labor $ 1375 F Carefully review the result of this analysis and consider the meaning of cost and efficiency variances. What does the favorable direct material cost variance and unfavorable direct materials efficiency variance suggest about quality of direct materials that were being used? What does the unfavorable direct labor cost variance and favorable direct labor efficiency variance suggest about quality of labor that was being used