QUESTION:

"Bargain Fender, which uses a standard cost system, manufactured 20,000 boat fenders during 2018, using 142,000 square feet of extruded vinyl purchased at $1.55 per square foot. Production required 450 direct labor hours that cost $15.50 per hour. The direct materials standard was seven square feet of vinyl per fender, at a standard cost of $1.60 per square foot. The labor standard was 0.025 direct labor hour per fender, at a standard cost of $14.50 per hour."

REQUIREMENTS:

"Compute the cost and efficiency variances for direct materials and direct labor. Does the pattern of variances suggest Bargain Fender's managers have been making trade-offs? Explain."

(X) E23-19 (similar to) Question Help Bargain Fender, which uses a standard cost system, manufactured 20,000 boat fenders during 2018. using 142,000 square feet of extruded vinyl purchased at $155 per square foot. Production required 450 direct labor hours that cost $15.50 per hour. The direct materials standard was seven square feet of vinyl per fender, at a standard cost of $1.60 per square foot The labor standard was 0 025 direct labor hour per fender, at a standard cost of $14.50 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 costAQ - actual quantity, FOHfixed overhead, SC standard cost SQ standard quantity) Formula Variance Direct materials cost variance Direct labor cost variance (AC-SC) AG (AC-SC)xAQ Choose from any list or enter any number in the input fields and then click Check Answer 3 parts remaining Clear All Check Answer es Select (U). (Ab A Requirement X entify wheti cost, SQ nce Compute the cost and efficiency variances for direct materials and direct labor. Does the pattern of variances suggest Bargain Fender's managers have been making trade-offs? Explain. Print Done