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Homework: Chapter 23 HW B Save Score: 0 of 1 pt 4 of 5 (5 complete) HW Score: 78.42%, 3.92 of 5 pts E23-19 (similar to) Question Help Premium Fender, which uses a standard cost system, manufactured 20,000 boat fenders during 2018, using 145,000 square feet of extruded vinyl purchased at $1.05 per square foot. Production required 410 direct labor hours that cost $15.00 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 0.022 direct labor hour per fender, at a standard cost of $14.00 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 Direct materials cost variance (AC-SC) XAQ Direct labor cost variance (AC-SC) AG U In Choose from any list or enter any number in the input fields and then click Check Answer. 3 parts Clear All Check Answer remaining Requirement - X - Compute the cost and efficiency variances for direct materials and direct labor. Does the pattern of variances suggest Premium Fender's managers have been making trade-offs? Explain. Print Done i Help Me Solve This Question Help Premium Fender, which uses a standard cost system, manufactured 20,000 boat fenders during 2018, using 145,000 square feet of extruded vinyl purchased at $1.05 per square foot. Production required 410 direct labor hours that cost $15.00 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 0.022 direct labor hour per fender, at a standard cost of $14.00 per hour. Read the requirement exceeded the standaru. Formula Variance Direct materials cost variance (AC-SC) AQ =( $ 1.10 $ 1.15 ) x 141,000 = $ 7,050 F Direct labor cost variance (AC-SC)XAQ =( $15.00 - $ 14.00 ) 480 $ 480 Determine the efficiency variances for direct materials and direct labor and identify whether each variance is favorable (F) or unfavorable (U). In regards to efficiency, a variance is favorable when the actual quantity was less than the standard and unfavorable when the actual quantity exceeded the standard. Formula Variance Direct materials efficiency variance = (AQ - SQ)X SC = ( 141,000 140,000) $ 1.15 $ 1,150 U Direct labor efficiency variance = (AQ - SQ)X SC =( 480 520 ) x $ 14.00 560 Does the pattern of variances suggest Quality Fender's managers have been making trade-offs? Explain. $ F This question is complete. Move your cursor over or tap on the red arrows to see incorrect answers. ? All parts showing Close ULT RII example