Huit Guard, which used a standard cost accounting system, manufactured 180,000 boat fenders during the year; using 1,540,000 feet of extruded vinyt purchased at 51.35 per foot. Production requered 4,100 direct labor hours that cost $15.50 per hour. The materials standerd was 8 feet of viny per tender at as standard cost of $1.45 per loot. The labor standard was 0.026 direct labor hour per fender ot a sfandard cost of $14.50 por hour. Read the iequirements. Requirement 1. Compute the price and quantity variances for direct materials. Compute the rade and eficiency variances for direct labor, (Enter the variances as posithe fiumbees Enter cuirency amounts to the nearest cent and your arswers fo the nenrest whole dollar, Label the variances as favorable (F) or untavorable (U) Aboreviations used OM = Diect materials, DL= Direct labot.) Begin with the variances for direct materials. First, determine the formwila for the direct materials price vacience, then compuite the price variance for direct materiass, (Assume that the quantity of materials purchased is equal to the quantity of materials used? 1=DWproewariancey= 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