Quality Guard, which uses a standard cost accounting system, manulactured 210,000 boat fenders during the year, using 1,780,000 m of extruded vinyl purchased at $1.15 permetre Production required 4780 deed labout hours that cost $13.50 per hour. The materials standard was 8m of vinyl per fender at a standard cost of $120 per metre The labour standard was 0.024 dred labour how perfonder of standard cost $12.00 per hour compute the price and efficiency variances for direct materials and direct labour Does the pattern of variances suggesi yards managers have been making trade-offs? Explain F Begin by determining the formula for the price variance, the compute the price variances for direct materials (DM) and direct labour (DL) (Enter the results as positive numbers. Labelach variance as favourable F) er unfavourable (U).) Actual price per input unit Standard price per input) Actual quantity of input DM (s 1.15 1.20 ) 1,780,000 $ 19 000 DL 5 1350 12.00 ) 4.700 - 5.050 Next, determine the formula for the efficiency variance, then compute the efficiency variances for direct material (OM) and direct labour (DL) (Enter the results as positive numbers. Labelcach wariance as favorable) unfavourable (US) Elliciency variance SW A