Hull Guard, which used a standard cost accounting system, manufactured 200,000 boat fenders during the year, using 1,450,000 feet of extruded vinyl purchased at $1.25 per foot. Production required 4.800 direct labor hours that cost $14.00 per hour. The materials standard was 7 foet of vinyl per fender at a standard cont of 51 35 per foot. The labor standard was 0.025 direct labor hour per fender at a standard cost of $13,00 per hour Read the requirements Requirement 1. Compute the price and quantity variances for direct materials Compute the rate and efficiency variancen for direct labor. (Enter the variance au positive numbers, Enter currency amounts to the nearest cent and your answer to the nearest whole dollar Label the variances as favorable (F) or unfavorable (U) Abbreviations used: DM - Direct materials, DL - Direct labor) Begin with the variances for direct materials. First, determine the formula for the direct materials price variance, then compute the price variance for direct materia (Assume that the quantity of materialo purchased is equal to the quantity of materials used.) DM price variance X X Requirements 1. Compute the price and quantity variances for direct materials. Compute the rate and efficiency variances for direct labor Does the pattern of variances suggest that the company's managers have been making trade-offs? Explain 2. Print Done