Question Help Deluxe Guard, which used a standard cost accounting system, manufactured 220.000 boat fenders during the year, using 1,370,000 feet of extruded vinyl purchased at 51.35 per foot Production required 4.500 direct labor hours that cost $12.50 per hour. The materials standard was 6 feet of vinyl per fender at a standard cost of $1.45 per foot. The labor standard was 0.028 direct labor hour per fender at a standard cost of $12.00 per hour Read the requirements Requirement 1. Compute the price and quantity variances for direct materials. Compute the rate and efficiency vanances for direct labor. (Enter the variances positive numbers Entier currency amounts to the nearest cant and your answers to the nearest whole dollar Label the variances as favorable (F) or untavorable (U) Abbreviations used DM Direct materials, DL Direct labor Begin with the variances for direct materials. First, determine the formula for the direct materials price variance, then compute the price variance for direct materials. (Assume that the quantity of materials purchased is equal to the quantity of materias used.) = DM price variance Determine the formula for the direct materials quantity variance, then compute the quantity variance for direct materials ) = OM quantity variance x Next, compute the variances for direct labor First determine the formula for the rate variance, then compute the rate vanance for direct labor x DL rate variance x Determine the formula for direct labor the efficiency variance, then compute the efficiency variance for direct labor DL efficiency variance 7 Choose from any list or enter any number in the input fields and then continue to the next question et materials. Compute the rate and efficiency variances for direct labor. (Enter the variances as sitive numbers. Enter curr rable (U). Abbreviations used: DM = Direct materials, DL = Direct labor.) mula for the direct materials price variance, then compute the price variance for direct materials. (Assume that the quantity Requirements compute the Compute the price and quantity variances for direct materials. Compute the rate and efficiency variances for direct labor. Does the pattern of variances suggest that the company's managers have been making trade-offs? Explain. nula for the ra Print Done ompute the efficiency variance for direct labor. DL efficiency variance then continue to the next