Boat Guard, which used a standard cost accounting system, manufactured 210,000 boat fenders during the year, using 1,780,000 feet of extruded vinyl purchased at $1.30 per foot. Production required 4,900 direct labor hours that cost $13.00 per hour. The materials standard was 8 feet of vinyl per fender at a standard cost of $1.40 per foot. The labor standard was 0.024 direct labor hour per fender at a standard cost of $12.00 per hour. Read the requirements. 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 numbers amounts to the nearest cent and your answers to the nearest whole dollar. Label the variances as favorable (F) or unfavorable (U). Abbreviations used: DM = Direct materials, DL Enter currency Begin with the variances for direct materials. First, determine the formula for the direct materials price variance, then compute the price variance for direct materials. (Assume that ie quantity of materials purchased is equal to the quantity of materials used.) Determine the formula for the direct materials quantity variance, then compute the quantity variance for direct materials. Next, compute the variances for direct labor. First, determine the formula for the rate variance, then compute the rate variance for direct labor. Determine the formula for direct labor the efficiency variance, then compute the efficiency variance for direct labor. The direct materials price variance combined with the effect is The direct labor rate variance combined with the efficiently. The net effect is direct materials quantity variance suggests that managers may have used direct labor efficiency variance suggests that managers may have used materials. The net workers who performed more