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Great Fender, which uses a standard cost syshem, manufachured 20,000 bost fenders during 2024 , using 145,000 square feet of extruded vind purchased at $1,20 per square foot Producfion requred 440 direct labor hours that cost $12.50 por hour. The droct materials standard was seven square foet of vimpl por fender, at a standard cost of $1.25 per square foot. The labor standard was 0.026 direct labor hour per fender, at a standard cost of $11.50 per hour. Read the Compute the cost and efficiency variances for direct materials and direct labor. Does the patfera of variances suggest Great Fender's managers have been making trade-ofts? Explain 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-otis? Explain. Begin with the cost variances. Select the required formulas, compute the cost variances for direct materiais and direct labor, and identify whether each variance is favorable (F) or unfavorable (U) (Abberenaticns used AC= actual cost: AO = actual quantify, FOH= fxed overheod, SC = standard cost: 5CO = standaed quantity ) Select the roquired formulas, compute the etficiency variances for diect materials and drect labor, and identify whether each variance is favorable (F) or untavorabke (U) (Abbreviations used AC= achuat cost AC= actual quantity, FOH= ficed overtiead, SC = standard cost; SCO = standard quantify) Does the pattern of vanances suggest Great Fender's managers have been making trade-offs? Explan The direct materials cost variance combined with the direct materials efficiency vanance suggests that managers may have used direct materials. The net effect on the fotal direct materials variance is The direct labor cost variance combined with the direct labor etficiency variance suggests that managers may have used workers who performed more etticiently. The net etfect on the total drect labor variance is