Question
E23-19 Calculating materials and labor variances DL Elff. Var. $ 1,540 F Pro Fender, which uses a standard cost system, manufactured 20,000 boat fenders during
E23-19 Calculating materials and labor variances DL Elff. Var. $ 1,540 F
Pro Fender, which uses a standard cost system, manufactured 20,000 boat fenders during 2016, using 146,000 square feet of extruded vinyl purchased at $1.05
per square foot. Production required 410 direct labor hours that cost $15.00 per hour. The direct materials standard was seven square feet of vinyl per fender, at a standard cost of $1.10 per square foot. The labor standard was 0.026 direct labor hour per fender, at a standard cost of $14.00 per hour.
Compute the cost and efficiency variance for direct materials and direct labor. Dose the pattern of variances suggest Pro Fender's managers have been making trade-offs? Explain.
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