Quality Guard, whid'r used a standard cost accounting system, manufactured 190,000 boat fenders during the year, using 1,620,000 feet ofextmded vinyl purchased at I

$1.10 per foot Production required 4.700 direct labor hours that cost $15.00 per hour The materials standard was 3 feet of vinyl per tender at a standard cost of $1.15

per foot. The laborstanoard was 0.027 direct labor hour per tender at a standard cost of $14 00 per hour. Read the muirements.

Requirement 1. Compute the price and quantity variances for direct materials. Compute the rate and efﬁciency variances for direct labor (Enter the variances as positive numbers. Enter currency amounts to the nearest cent and your answers to the nearest whole dollar Label the variances as favorable (F) or unfavorable (Li).

Abbreviations used DM = Direct materials, Di. = Direct labor.) Begin with the variances for dired materials Firm, determine the fom'rula 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( - J = DMpricevariance

Xi - l = Determine the formula for the direct materials quantity variance then compute the quantity variance for direct materials. xt - ] = DM quantity variance x( - J: v Choose nom any list or enter any number in the input ﬁelds and then continue to the next question arch