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Please see the attachment Premium Guard, which uses a standard cost accounting system, manufactured 190,000 boat fenders during the year, using 1,620,000 m of extruded

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Premium Guard, which uses a standard cost accounting system, manufactured 190,000 boat fenders during the year, using 1,620,000 m of extruded vinyl purchased at $1.35 per metre. Production required 4,700 direct labour hours that cost $15.50 per hour. The materials standard was 8 m of vinyl per fender at a standard cost of $1.40 per metre. The labour standard was 0.028 direct labour hour per fender at a standard cost of $14.00 per hour. Compute the price and efficiency variances for direct materials and direct labour. Does the pattern of variances suggest Premium Guard's managers have been making trade-offs? Explain. Begin by determining the formula for the price variance, then compute the price variances for direct materials (DM) and direct labour (DL). (Enter the results as positive numbers. Label each variance as favourable (F) or unfavourable (U).) Price variance DM DL Next, determine the formula for the efficiency variance, then compute the efficiency variances for direct materials (DM) and direct labour (DL). (Enter the results as positive numbers. Label each variance as favourable (F) or unfavourable (U).) )X Efficiency variance DM x DL )X The direct materials price variance combined with the direct materials efficiency variance suggests that managers may have used materials. The net effect is The direct labour price variance combined with the direct labour efficiency variance suggests that managers may have used workers who performed more efficiently. The net effect is

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