Best Fender, which uses a standard costsystem, manufactured 20,000 boat fenders during 2024, using 145,000 square feet of extruded vinyl purchased at $1.15 per square foot. Production required 410 direct labor hours that cost $15.50 per hour. The direct materials standard was seven square feet of vinyl perfender, at a standard cost of $1.20 per square foot. The labor standard was 0.027 direct labor hour perfender, at a standard cost of $14.50 per hour.

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

(Abbreviations used: AC= actualcost; AQ= actualquantity; FOH= fixedoverhead; SC= standardcost; SQ= standardquantity.)