Great Fender, which uses a standard cost system, manufactured 20,000 boat fenders during 2016,

using 142,000 square feet of extruded vinyl purchased at $ 1.05 per square foot. Production required

430 direct labor hours that cost $ 14.50 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 0.025 direct labor hour per fender, at a standard cost of $13.50 per hour. Compute the cost and efficiency variances for direct materials and direct labor. Does the pattern of variances suggest Great Fender's managers have been making trade-offs? Explain.