Matthews Fender, which uses a standard cost system, manufactured 20,000 boat fenders during 2018, using 143,000 square feet of extruded vinyl purchased at $1.30 per square foot. Production required 400 direct labor hours that cost $16.00 per hour. The direct materials standard was seven square feet of vinyl per fender, at a standard cost of $1.35 per square foot. The labor standard was 0.028 direct labor hour per fender, at a standard cost of $15.00 per hour. Read the requirement. Begin with the cost variances. Select the required formulas, compute the cost variances for direct materials and direct labor, and identify whether each variance is favorable (F) or unfavorable (U). (Abbreviations used: AC = actual cost; AQ = actual quantity; FOH = fixed overhead; SC = standard cost; SQ = standard quantity.) Formula Variance Requirement Direct materials cost variance Direct labor cost variance Compute the cost and efficiency variances for direct materials and direct labor. Does the pattern of variances suggest Matthews Fender's managers have been making trade-offs? Explain. Print Done The May 2018 revenue and cost information for McDonald Outfitters, Inc. follows: B (Click the icon to view the revenue and cost information.) Prepare a standard cost income statement for management through gross profit. Report all standard cost variances for management's use. Has management done a good or poor job of controlling costs? Explain. (Use a minus sign or parentheses to enter any contra expenses. Enter all other amounts as positive numbers.) McDonald Outfitters, Inc. - Data Table Standard Cost Income Statement For the Month Ended May 31, 2018 $ 610,000 Sales Revenue (at standard) Cost of Goods Sold (at standard) Direct Materials Cost Variance Direct Materials Efficiency Variance Direct Labor Cost Variance 348,000 1,500 F 6,600 F 4,200 U 2,700 F Direct Labor Efficiency Variance Variable Overhead Cost Variance 2,800 U Variable Overhead Efficiency Variance Fixed Overhead Cost Variance 1,100 U 2,300 U 8,300 F Fixed Overhead Volume Variance Print Done Gross Profit