Question: All - Star Fender, which uses a standard cost system, manufactured 20,000 boat fenders during 2018, using 141,000 square feet of extruded vinyl purchased at

 All - Star Fender, which uses a standard cost system, manufactured

All - Star Fender, which uses a standard cost system, manufactured 20,000 boat fenders during 2018, using 141,000 square feet of extruded vinyl purchased at $1.10 per square foot. Production required 410 direct labor hours that cost $12.50 per hour. The direct materials standard was seven square feet of vinyl per fender, at a standard cost of $1.15 per square foot. The labor standard was 0.026 direct labor hour per fender, at a standard cost of $11.50 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; AQ = actual quantity: FOH = fixed overhead, sc-standard cost; SQ standard quantity.) 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 officiency variance Does the pattern of variances suggest All-Star Fender's managers have been making trade-offs? Explain. The managers may have used The have used | direct materials cost variance combined with the direct materials efficiency variance suggests that | direct materials. The net effect on the total direct materials variance is | direct labor cost variance combined with the I direct labor efficiency variance suggests that managers may I workers who performed more officienty. The net effect on the total direct labor variance is Choose from any list or enter any number in the input fields and then continue to the next

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