Parker Plastic, Inc., 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 $289,280904,000 units) Standard Quantity Standard Price (Rate) $ 0.92 per sq. ft. Standard Unit Cost 9 sq ft. $ 8.28 0.25 hr. $10.40 per hr. 2.60 0.25 hr. $ 1.60 per hr. 0.40 0.32 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 11,100,000 $ 9,990,000 302,000 $ 3,110,600 $ 496,000 $ 359,000 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 unfavorable, and "None" for no effect (i.e., zero variance).) Direct Material Price Variance Direct Material Quantity Variance U

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Parker Plastic, Inc., 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
$289,280904,000 units)
Standard
Quantity
Standard Price
(Rate)
$ 0.92 per sq. ft.
Standard
Unit Cost
9 sq ft.
$ 8.28
0.25 hr.
$10.40 per hr.
2.60
0.25 hr.
$ 1.60 per hr.
0.40
0.32
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
11,100,000
$ 9,990,000
302,000
$ 3,110,600
$
496,000
$
359,000
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 unfavorable, and "None" for no effect (i.e., zero variance).)
Direct Material Price Variance
Direct Material Quantity Variance
U
Transcribed Image Text:Parker Plastic, Inc., 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 $289,280904,000 units) Standard Quantity Standard Price (Rate) $ 0.92 per sq. ft. Standard Unit Cost 9 sq ft. $ 8.28 0.25 hr. $10.40 per hr. 2.60 0.25 hr. $ 1.60 per hr. 0.40 0.32 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 11,100,000 $ 9,990,000 302,000 $ 3,110,600 $ 496,000 $ 359,000 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 unfavorable, and "None" for no effect (i.e., zero variance).) Direct Material Price Variance Direct Material Quantity Variance U
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