pro Fender, which uses a standard cost system, manufactured 20000 boat fenders during 2024, using 142000 square feet of extruded vinyl purchased at $1.45 per square foot. Production required 440 direct labor hours that cost $13.50 per hour. The direct materials standard was seven square feet of vinyl per fender, at a standard cost of $1.50 per square foot. The labor standard was 0.025 direct labor hour per fender, at a standard cost of $12.50 per hour.

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.)