Deluxe Fender, which uses a standard cost system, manufactured 20,000 boat fenders during 2018, using 141,000 square feet of extruded vinyl purchased at $1.55 per square foot. Production required 430 direct labor hours that cost $14.00 per hour. The direct materials standard was seven square feet of vinyl per fender, at a standard cost of $1.60 per square foot. The labor standard was 0.024 direct labor hour per fender, at a standard cost of $13.00 per hour. Read the requirement. 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). (Abbreviations used: AC = actual cost; AQ = actual quantity; FOH = fixed overhead; SC = standard cost; SQ = standard quantity.) 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). (Abbreviations used: AC = actual cost; AQ = actual quantity; FOH = fixed overhead; SC standard cost; SQ = standard quantity.) Direct materials cost variance Formula Variance Direct labor cost variance Select the required formulas, compute the efficiency variances for direct materials and direct labor, and identify whether each variance is favorable (F) or unfavorable (U). (Abbreviations used: AC = actual cost; AQ = actual quantity; FOH = fixed overhead; SC = standard cost; SQ standard quantity.) Direct materials efficiency variance Direct labor efficiency variance Formula Variance Does the pattern of variances suggest All-Star Fender's managers have been making trade-offs? Explain. The direct materials cost variance combined with the managers may have used direct materials efficiency variance suggests that direct materials. The net effect on the total direct materials variance is The have used direct labor cost variance combined with the direct labor efficiency variance suggests that managers may workers who performed more efficiently. The net effect on the total direct labor variance is