Great Cuard, which used a standard cost accounting system, manulactured 240,000 boat fenders during the year, using 2.020,000 feet of watruded vhyi purchased at 51,05 per foot. Production required 4,400 diroct labor hours that cost $17.00 per hour The materlats standard was 8 feet of vinyl per fender at a atandard cost of 51.10 per foot. The laboc standard was 0.023 difect labor hout per fender at a standard cost of $16.00 per hour. Road the restivestents or untayorable (v).) Thie difect niaftishs price variancesis The direct metaftsls quantiy vartance ho The Direct metetiats prise varianco combined with the materials Tha net silluct is Requirement 2. Does the pattern of karlances suggest that the company's manageis have been making trade. offis? Explain, The direct materlals pelce variance combined with the direct materiay quentity variance suggests that managers may haviv used materiats. The net effect is Theperformedmaresiffelemilythenetetfectis Requirements 1. Compute the price and quantity variances for direct materials. Compute the rate and efficiency variances for direct labor. 2. Does the pattern of variances suggest that the company's managers have been making trade-offs? Explain