Dock Guard, which uses a standard cost accounting system, manufactured 230,000 boat fenders during the year, using 1,660,000 feet of extruded vinyl purchased at $1.20 per foot. Production required 4,400 direct labor hours that cost $15.50 per hour. The materials standard was 7 feet of vinyl per fender at a standard cost of $1.25 per foot. The labor standard was 0.027 direct labor hour per fender at a standard cost of $15.00 per hour Read the requirements. Requiremen 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. Enter currency 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 Direct labor.) 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 the quantity of materials 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 Next, compute the variances for direct labor. First, determine the formula for the rate variance, then compute the rate variance for direct labor. DL rate variance Determine the formula for direct labor the efficiency variance, then compute the efficiency variance for direct labor. ) = DL efficiency variance