Best vendor, which uses a standard cost system, manufactured 20,000 boat fenders during 2024, using 144,000 ft. of extruded vinyl purchased at $1.15 per square foot. Production required 410 direct labor hours that cost $15 per hour. The direct material standard with 7 ft. of vinyl per fender at a standard cost of $1.20 per square foot. The labor standard was 0.022 direct labor hours per fender, add a standard cost of $14 per hour

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).

Requirement Compute the cost and efficiency variances for direct materials and direct labor. Does the pattern of variances suggest Best Fender's managers have been making trade-offs? Explain. Formula Variance