Superior Guard, which used a standard cost acoounting system, manufactured 230,000 boat foriders during the year, using 1,660,000 feel of extruded vinyl purchased at $1.15 per foot. Production requirod 4,800 direct labor hours that cost $16.00 per hour. The moterials standard was 7 feet of vinyl per fender at a standard cost of $1.20 per foot. The labor standard was 0.025 direct labor hour per fender at a standard cost of $15.50 per hout: Road the reavirements. Requirement 1. Compute the price and quantity vaniances for direct matorials. Compute the rate and efficiency variances for direct labor, (Enter the variances as positive numberi. Enter currency amounts to the nearest cent and your answers to the nearest whole dollar. Label the variances as favvorable (F) or unfavorable (U) Abbreviations used: DM= Direct materials, OL= Direct labor.) Begin with the variances for direct materiala. First, determine the formula for the direct materials price variance, then cornpute the price variance for direct materiais. (Assume that the quantity of materials purchased is equal to the quantity of materials used.) Requirements 1. Compute the price and quantity variances for direct materials. Compute the rate and efficiency variances for direct labor. 2. Does the pattern of variances suggest that the company's managers have been making trade-offs? Explain