Require 1. What are the benefits of setting cost standards? efficiency 2. Calculate the direct materials cost variance and the direct materials variance, as well as the direct labor cost and efficiency variances. E23-19 Calculating materials and labor variances Great Fender, which uses a standard cost accounting system, manufactured 20,000 boat fenders using 144,000 square feet of extruded vinyl purchased at S1.05 per square foot. Production required 420 direct labor hours that cost $13.50 per hour. The direct materials standard was 7 square feet of vinyl per fender, at a standard cost of $1.10 per square foot. The labor standard was 0.025 direct labor hour per fender, at a standard cost of $12.50 per hour. Compute the cost and efficiency variances for direct materials and direct labor. Does the pattern of variances suggest Great Fender's managers have been making trade-offs? Explain