Requirement 3 What was the company's static budget variance $ 3. IF meaning that its operating income is higher than expected per the static budget. Requirement 4 What additional information does the performance report provide to managers other than the simple static budget? Do these variances suggest that marketing department did a good. . .or poor job? They sold more units than expected and sold them at a higher price. Homework 2 Texas Boat Covers, Inc. which uses a standard cost accounting system, manufactured 2,000 boat covers during 2014, using 14,400 square feet of vinyl purchased at $1.05 per square foot. Production required 42 direct labor hours that cost $13.50 per hour. The direct labor standard was 0.025 direct labor hour per cover, at a standard cost of $12.50. The direct materials standard was T square feet of vin l I - cover. at a standard cost of$1 .10 per square foot. Requirement 1 Compute the cost and efciency variances for direct materials and direct labor. Begin the cost variances for each. Select the \"shortcut\" formula and compute. (Note: you can use the \"shortcut\" formula or the regular formula to compute the variance) Direct materials cost variance = (AC-SC) x AQ = (1.05-1.10) x 14,400 sq. = 720 F Direct labor cost variance = (AC-SC) x AQ = = 4. |U Next, compute the efciency variance for each. Select the \"shortcut\" formula and compute. (Note: you can use the \"shortcut" formula or the regular formula to compute the variance) Direct materials efciency variance = (AQ-SQ) "5 SC = = 5. I U