E23-19 (similar to) Question Help Premium Fender, which uses a standard cost system, manufactured 20,000 boat fenders during 2018, using 144,000 square feet of extruded vinyl purchased at $1.45 per square foot. Production required 430 direct labor hours that cost $13.50 per hour. The direct materials standard was seven square feet of vinyl per fender, at a standard cost of $1.50 per square foot. The labor standard was 0.026 direct labor hour per fender, at a standard cost of $12.50 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: ACactual cost, AQactual quantity; FOH fixed overhead; SC- standard cost; SQstandard quantity.) Requirement Direct materials Direct labor cost Compute the cost and efficiency variances for direct materials and direct labor. Does the pattern of variances suggest Premium Fender's managers have been making trade-offs? Explain Print Done