The drop down options are: favorable / unfavorable favorable / unfavorable higher quality / lower quality favorable / unfavorable favorable / unfavorable favorable / unfavorable more skilled (higher paid) / lesser skilled (lower paid) favorable / unfavorable

er, which uses a standard cost system, manufactured 20,000 boat fenders during 2018, using 141,000 square feet of extruded vinyl purchased at $1.20 per square foot. required 420 direct labor hours that cost $13.50 per hour. The direct materials standard was seven square feet of vinyl per fender, at a standard cost of $1.25 per square foot. The Bargain Fend labor standard was 0.026 direct labor hour per fender, at a standard cost of $12.50 per hour Read the requirement Begin with the cost variances. Select the required formulas, compute the cost variances for direct materials and direct labor, and identify whether each variance is favorable (F) or unfavorable (U), (Abbreviations used: AC " actual cost: Ad + actual quantity. FOH -fixed overhead SC standard cost: SQ standard quantity.) Variance Formula Direct materials cost variance Direct labor cost variance Select the required formulas, compute the efficiency variances for direct materials and direct labor, and identify whether each variance is favorable (F) or unfavorable () (Abbreviations used: AC actual cost; AQ actual quantity; FOHfixed overhead, SC standard cost: SQ standard quantity) Formula ance Direct materials efficiency variance Direct labor efficiency vaniance Does the pattern of variances suggest Bargain Fenders managers have been making trade-offs? Explain. The materials. The net effect on the total direct materials variance is direct materials cost variance combined with the Y direct materials efficiency variance suggests that managers may have used direct direct labor efficiency variance suggests that managers may have used The V direct labor cost variance combined with the workers who performed more efficiently. The net effect on the total direct labor variance is G Requirement Compute the cost and efficiency variances for direct materials and direct labor Does the pattern of variances suggest Bargain Fender's managers have been making trade-offs? Explain. Print Done