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UM- Great Fender which uses a standard cost system, manufactured 20,000 boat fenders during 2024 using 146,000 square feet of extruded vinyl purchased at $1.15

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UM- Great Fender which uses a standard cost system, manufactured 20,000 boat fenders during 2024 using 146,000 square feet of extruded vinyl purchased at $1.15 per square foot. Production required 410 direct labor hours that cost $13.00 per hour. The direct materials standard was seven square feet of vinyl per fender, at a standard cost of $1.20 per square foot The labor standard was 0.023 direct labor hour per fender, at a standard cost of $12.00 per hour Read the requirement Beg and AC Requirement thin Cancel Dire Compute the cost and efficiency variances for direct materials and direct labor Does the pattern of variances suggest Great Fender's managers have been making trade-offs? Explain Dire Sele iden ad hatec Print Done Dire Direct labor efficiency variance Does the pattern of variances suggest Great Fender's managers have been making trade-offs? Explain The direct materials cost variance combined with the direct materials efficiency variance suggests that managers may have used direct materials. The net effect on the total direct materials variance is TES Formula Variance 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 (U) (Abbreviations used AC = actual cost AQ = actual quantity: FOH = fixed overhead, SC - standard cost SQ = standard quantity) Formula Variance Direct materials efficiency variance Direct labor efficiency variance Does the pattern of variances suggest Great Fender's managers have been making trade-offs? Explain The V direct materials cost variance combined with the direct materials efficiency variance suggests that managers may have used V direct materials. The net effect on the total direct materials variance is nate The direct labor cost variance combined with the suggests that managers may have used The net effect on the total direct labor variance is direct labor efficiency variance workers who performed more efficiently

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