Bargain Guard, which used a standard cost accounting system, manufactured 240,000 boat fenders during the year, using 1970,000 feet of extruded vinyl purchased at $1.50 per foot Production required 4.400 direct labor hours that cost $14.00 per hour. The materials standard was 8 feet of vinyt per fender at a standard cost of $1.65 per foot. The labor standard was 0.027 direct labor hour per fender at a standard cost of $13.00 per hour. Read the resultements Requirement 1. Compute the price and quantity variances for direct materials. Compute the rate and efficiency variances for direct labor. (Enter the variances as positive numtion Enter currency amounts to the nearest cent and your answers to the nearest whole dollar Label the variances as favorable (F) or unfavorable (0) Abbreviations used: DM - Direct materials, DL - Direct labor.) Begin with the variances for direct materials. First, determine the formula for the direct materials price variance, then computo the price variance for direct materials Assume that the quantity of materiale purchased is equal to the quantity of materials used) DM price variance Determine the formula for the direct materials quantity variance, then compute the quantity variance for direct materials. DM quantity variance i Requirements X 1. Compute the price and quantity variances for direct materials. Compute the rate and efficiency variances for direct labor. Does the pattern of variances suggest that the company's managers have been making trade-offs? Explain. 2. Print Done Requirement 2. Does the pattern of variances suggest that the company's managers have been making trade-offs? Explain The direct materials price variance combined with the direct materiais quantity variance suggests that managers may have used materials. The net effect is The direct labor rate variance combined with the workers who performed more efficiently. The net effect is direct labor efficiency variance suggests that managers may have used Chance forum