All-Star Fender, which uses a standard cost accounting system, manufactured 20,000 boat fenders during the year, using 146,000 feet of extruded vinyl purchased at $1.15 per square foot. Production required 480 direct labor hours that cost $15.00 per hour. The materials standard was 7 feet of vinyl per fender, at a standard cost of $1.20 per square foot. The labor standard was 0.026 direct labor hour per fender, at a standard price of $14.00 per hour.

Requirement

Compute the price and efficiency variances for direct materials and direct labor. Does the pattern of variances suggest All-Star Fenders managers have been making trade-offs? Explain.