Quality Fender, which uses a standard cost system, manufactured $20,000$ boat fenders during $2025,$ using $145,000$ square feet

of extruded vinyl purchased at $$1\mathrm{.}30$ per square foot. Production required $410$ direct labor hours that cost $$24\mathrm{.}00$ per hour. The

direct materials standard was seven square feet of vinyl per fender, at a standard cost of $$1\mathrm{.}35$ per square foot. The labor

standard was $0\mathrm{.}027$ direct labor hour per fender, at a standard cost of $$23\mathrm{.}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.

$($Abbreviations used: $AC=$ actual cost; $AQ=$ actual quantity; FOH$=$ fixed overhead; $SC=$ standard cost; SQA$=$ standard quantity

allowed. Label the variance as favorable $($F$)$ or unfavorable $($U$),$ in the input field after the amount you enter.$)$

Formula

Variance

Requirement

Compute the cost and efficiency variances for direct materials and direct labor.

Does the pattern of variances suggest Quality Fender's managers have been

making trade$-$offs? Explain.