Superior fender, which uses a standard cost system, manufacture 20,000 boat fenders during 2018, using 141,000 square feet of extruded vinyl purchased at $1.55 per square foot. production required 470 direct labor hours they cost $15 per hour. The direct materials standard was 7 square feet of vinyl per fender, and a standard cost of $1.60 per square foot. The labor standard was .027 direct labor hour per fender, and a standard cost of $14 per hour. State the required formulas, compute the cost variances for direct materials and direct labor and identify whether each variance is favorable or unfavorable. Compute the cost and efficiency variances for direct materials and direct labor. Does the pattern of variances suggest superior offenders managers have been making trade-offs? Explain.