Superior Guard, which used a standard cost accounting system, manufactured 200,000 boat fenders during the year, using 1,450,000 feet of extruded vinyl purchased at $1.40 per foot. Production required 4,500 direct labor hours that cost $14.00 per hour. The materials standard was 7 feet of vinyl per fender at a standard cost of $1.55 per foot. The labor standard was 0.025 direct labor hour per fender at a standard cost of $13.00 per hour Read the requirements variances as positive numbers. Enter currency amounts to the nearest cent and your answers to the nearest whole dolar. Label the variances as favorable (F) or unfavorable (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 materials used ) x ( DM price variance Determine the formula for the direct materials quantity variance, then compute the quantity variance for direct materials ) # DM quantity variance Next, compute the variances for direct labor. First, determine the formula for the rate variance, then compute tle rate variance for direct labor DL rate variance Determine the formula for direct labor the efficiency variance, then compute the efficiency variance for direct labor x ( x ( DL efficlency variance Requirement 2. Does the pattern of variances suggest that the company's managers have been making trade-offs ? Explain The used direct materials price variance combined with the direct materials quantity variance suggests that managers may have "I materials. The net effect is -- 'I direct labor efficiency variance suggests that managers may have used The | direct labor rate variance combined with the workers who performed more efficiently. The net effect is hoose from any list or enter any number in the input fields and then continue to the next question. i Requirements iance Compute the price and quantity variances for direct materials. Compute the rate and efficiency variances for direct labor 1. e for direct lab 2. Does the pattern of variances suggest that the company's managers have ariance been making trade-offs? Explain. Print Done