arker Plastic, Incorporated, manufactures plastic mats to use with rolling office chairs. Its standard cost information for last yearllows:Direct materials (plastic)Direct laborVariable manufacturing overhead (based on direct labor hours)Fixed manufacturing overhead ($345,800 910,000 units)arker Plastic had the following actual results for the past year:Number of units produced and soldNumber of square feet of plastic usedCost of plastic purchased and usedNumber of labor hours workedDirect labor costVariable overhead costFixed overhead cost1,040,00011,400,000$ 9,120,000308,000$ 3,449,600$ 689,000$365,000< Prevequired:alculate Parker Plastic's direct labor rate and efficiency variances.ote: Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, "U" fornfavorable, and "None" for no effect (i.e., zero variance).6 of 10Standard Quantity12 square foot0.3 hour0.3 hour#Standard Price (Rate)$ 0.83 per square foot$10.50 per hour.$ 2.20 per hourNext >Standard Unit C$9.963.150.660.38 Required:Calculate Parker Plastic's direct labor rate and efficiency variances.Note: Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, "U" forunfavorable, and "None" for no effect (i.e., zero variance).Direct Labor Rate VarianceDirect Labor Efficiency Variance

Answer:- Labor variance meaning:- When the actual cost of a labor activity differs from the amount…

Answered: arker Plastic, Incorporated,…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Parker Plastic, Inc., manufactures plastic mats to use with rolling office chairs. Its standard cost information for last year follows: Standard Quantity Standard Price (Rate) Standard Unit Cost $ 5.04 $ 0.63 per sq. ft. $10.50 per hr. 2.73 $ 1.50 per hr. 0.39 Direct materials (plastic) Direct labor Variable manufacturing overhead (based on direct labor hours) Fixed manufacturing overhead ($308,040 906,000 units) 8 sq ft. 0.26 hr. 0.26 hr. Parker Plastic had the following actual results for the past year: Number of units produced and sold Number of square feet of plastic used Cost of plastic purchased and used Number of labor hours worked Direct labor cost Variable overhead cost Fixed overhead cost Direct Labor Rate Variance Direct Labor Efficiency Variance 1,220,000 11,200,000 $ 6,720,000 305,000 $ $ 3,233,000 540,000 361,000 $ 0.34 Required: Calculate Parker Plastic's direct labor rate and efficiency variances. (Do not round intermediate calculations. Indicate the effect of each…
Parker Plastic, Incorporated, manufactures plastic mats to use with rolling office chairs. Its standard cost information for last year follows: Direct materials (plastic) Direct labor Standard Quantity 12 square foot 0.3 hour Standard Price (Rate) $ 0.83 per square foot $ 10.50 per hour 17 Variable manufacturing overhead (based on direct labor hours) Fixed manufacturing overhead ($345,800+ 910,000 units) 0.3 hour $2.20 per hour Parker Plastic had the following actual results for the past year: Number of units produced and sold Number of square feet of plastic used Cost of plastic purchased and used Number of labor hours worked Direct labor cost Variable overhead cost Fixed overhead cost 1,040,000 11,400,000 $ 9,120,000 308,000 $ 3,449,600 $689,000 $ 365,000 Required: Calculate Parker Plastic's direct labor rate and efficiency variances. Note: Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for…
Use the information below on Direct Labor costs to answer question#33. GIVEN: Management at the Best Ceramic Vase Company wishes to analyze its Direct Labor costs. During September, company management noted that it used 3,400 hours of Direct Labor at a cost of $76,500 to produce 2,300 vases. The company set the following Direct Labor standard. 1.5 hours of Direct Labor per unit at an hourly wage rate of $22.00 33) Determine the actual wage rate (using the Given information above). A) $15.00 B) $22.00 C) $22.18 D) $22.50
Parker Plastic, Incorporated, manufactures plastic mats to use with rolling office chairs. Its standard cost information for last year follows: Direct materials (plastic) Direct labor Variable manufacturing overhead (based on direct labor hours) Fixed manufacturing overhead ($500,040 926,000 units) Parker Plastic had the following actual results for the past year: Number of units produced and sold Number of square feet of plastic used Cost of plastic purchased and used Number of Labor hours worked Direct labor cost Variable overhead cost Fixed overhead cost 1.200,000 12,200,000 $7,320,000 324,000 $3,855,600 $1,300,000 $ 381,000 Required: Calculate Parker Plastic's direct labor rate and efficiency variances Direct Labor Rate Variance Direct Labor Efficiency Vince Standard Quantity 13 square foot 0.25 hour 0.25 hour Standard Price (Rate) $ 0.70 per square foot $ 12.20 per hour $ 1.40 per hour Note: Do not round intermediate calculations. Indicate the effect of each variance by selecting…
Golfers, Inc. (Gl) manufactures golf-related equipment including golf balls. This year's expected production of golf balls is 80,000 packs (each consisting of four golf balls). Cost data are as follows: Product costs directly traceable to balls! Direct materials. Direct labour Variable manufacturing overhead Fixed manufacturing overhead General allocated overhead Pack $2.30 1.20 0.25 Packs $184,000 96,000 20,000 40,800 21,600 $362,400 The full cost of one pack of golf balls is $4.53. Gl has received an offer from an outside supplier to supply any desired quantity of balls at a price of $5.45 per pack of four golf balls. The cost accounting department has provided the following information: a. The direct fixed manufacturing overhead is the cost of leasing the machine that stamps out the balls. The machine can produce a maximum of 500,000 balls per year. If the balls are bought, the machine will no longer be needed. b. No other costs will be affected. Per Unit Required: 1. Prepare an…
Domestic
David Manufacturing, which uses the high-low method for estimating cost function, makes a product called Kwan. The company incurs three different manufacturing cost types (A, B, and C) and has a relevant range of operation between 4,000 units and 10,000 units per month. Per-unit costs at two different activity levels for each cost type are presented below. Type A Type B Type C Total 5,000 units $7 $12.60 $4 $23.60 7,500 units $7 $8.40 $3 $18.40 Required: a) Classify each of the costs (A, B, and C) as either fixed or variable or semi-variable b) Write down a linear cost function that expresses the behavior of Shum's total manufacturing cost as a function of # of units produced. c) If Shum produces 10,000 units, what would be the total cost of manufacturing? d) If all fixed costs (or fixed components of costs) decrease by 10% and all variable costs (or variable components of costs) decrease by 10%, what would be the total cost of manufacturing for an activity level of production of 8,000…
Parker Plastic, Incorporated, manufactures plastic mats to use with rolling office chairs. Its standard cost information for last year follows: Direct materials (plastic) Direct labor Variable manufacturing overhead (based on direct labor hours) Fixed manufacturing overhead ($378,000 ÷ 900,000 units) Parker Plastic had the following actual results for the past year: Number of units produced and sold Number of square feet of plastic used Cost of plastic purchased and used Number of labor hours worked Direct labor cost Variable overhead cost Fixed overhead cost Direct Labor Rate Variance Direct Labor Efficiency Variance IF TI 1,000,000 11,800,000 $ 8,260,000 $ Required: Calculate Parker Plastic's direct labor rate and efficiency variances. Note: Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). F 245,000 2,891,000 $ 318,500 $ 355,000 Standard Quantity 12 square…
Summer Enterprises produces "Breeze" and "Storm" cooling fans. Selected data related to each product is as follows: Breeze Storm Sales price per unit $200 $300 Direct materials per unit $60 $70 Direct labour per unit $30 $35 Variable overhead per unit $10 $15 Direct labour hours per unit 2 There is a maximum of 24,000 direct labour hours available each year.
Parker Plastic, Inc., manufactures plastic mats to use with rolling office chairs. Its standard cost information for last year follows: Standard Standard Quantity 12 sq ft. $ 1.00 per sq. ft. 0.25 hr. Standard Price (Rate) Unit Cost $ 12.00 3.20 Direct materials (plastic) Direct labor $12.80 per hr. Variable manufacturing overhead (based on direct labor hours) Fixed manufacturing overhead $559, 200 + 932,000 units) 0.25 hr. $ 2.00 per hr. 0.50 0.60 Parker Plastic had the following actual results for the past year: Number of units produced and sold Number of square feet of plastic used Cost of plastic purchased and used 1, 260,000 12,500,000 $ 11, 250,000 330,000 4,026,000 $ 1,480,000 Number of labor hours worked Direct labor cost Variable overhead cost Fixed overhead cost 387,000 Required: Calculate Parker Plastic's direct materials price and quantity variances. (Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, "U" for…
KBG Manufacturing has the following standard cost sheet for one of its products: Direct materials ( 5 ft. @ $5) $25 Direct labour (1 hours @ $10) 10 Variable overhead ( 1 hours@ $ 4) 4 Fixed overhead ( 1 hours@ $2*) 2 Standard unit cost 41 *Rate based on expected activity of 15,000 hours. During the most recent year, the following actual results were recorded: Production 10,000 units Fixed overhead $30,000 Variable overhead $57,000 Direct materials (71,250 ft. purchased) $361,620 Direct labour (15,900 hours) $ 182,580 Required: Compute the following variances: 1. Direct materials price and usage variances. 2. Direct labour rate and efficiency variances
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