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Premium Fender, which uses a standard cost system, manufactured $20,000$ boat fenders during $2024,$ using $142,000$ square feet of extruded vinyl purchased at $$1\mathrm{.}50$ per square foot. Production required $460$ direct labor hours that cost $$16\mathrm{.}50$ per hour. The direct materials standard was seven square feet of vinyl per fender, at a standard cost of $$1\mathrm{.}55$ per square foot. The labor standard was $0\mathrm{.}027$ direct labor hour per fender, at a standard cost of $$15\mathrm{.}50$ per hour.

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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.$)$

$\backslash$table$[[,,$Formula,,,lariance,$],[$Direct materials cost variance,$=,(AC-SC)AQ,=,$$$,7,100,$F$],[$Direct labor cost variance,$=,(AC-SC)AQ,=,$$$,460,$U$]]$

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.$)$

$\backslash$table$[[,$Formula,,Variance$],[$Direct materials efficiency variance,$=,,$

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