Homework Help is Here – Start Your Trial Now!
Business
Accounting
Parker Plastic, Inc., manufactures plastic mats to use with rolling office chairs. Its standard cost information for last year follows: Standard Standard Standard Price (Rate) $ 1.40 per sq. ft. $ 13.70 per hr. Unit Cost Quantity 10 sq ft. Direct materials (plastic) Direct labor $ 14.00 0.3 hr. 4.11 Variable manufacturing overhead (based on direct labor hours) Fixed manufacturing overhead $639,200 940,000 units) 1.50 per hr. 0.3 hr 0.45 0.68 Parker Plastic had the following actual results for the past year: 1,020,000 12,900,000 $ 16,770,000 338,000 Number of units produced and sold Number of square feet of plastic used Cost of plastic purchased and used Number of labor hours worked $ 4,258,800 $ Direct labor cost Variable overhead cost 1,760,000 $ 395,000 Fixed overhead cost 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.) F Direct Material Price Variance Direct Material Quantity Variance L

Parker Plastic, Inc., manufactures plastic mats to use with rolling office chairs. Its standard cost information for last year follows: Standard Standard Standard Price (Rate) $ 1.40 per sq. ft. $ 13.70 per hr. Unit Cost Quantity 10 sq ft. Direct materials (plastic) Direct labor $ 14.00 0.3 hr. 4.11 Variable manufacturing overhead (based on direct labor hours) Fixed manufacturing overhead $639,200 940,000 units) 1.50 per hr. 0.3 hr 0.45 0.68 Parker Plastic had the following actual results for the past year: 1,020,000 12,900,000 $ 16,770,000 338,000 Number of units produced and sold Number of square feet of plastic used Cost of plastic purchased and used Number of labor hours worked $ 4,258,800 $ Direct labor cost Variable overhead cost 1,760,000 $ 395,000 Fixed overhead cost 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.) F Direct Material Price Variance Direct Material Quantity Variance L

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

I need help solving this problem

Parker Plastic, Inc., manufactures plastic mats to use with rolling office chairs. Its standard cost information for last year follows: Standard Standard Standard Price (Rate) $ 1.40 per sq. ft. $ 13.70 per hr. Unit Cost Quantity 10 sq ft. Direct materials (plastic) Direct labor $ 14.00 0.3 hr. 4.11 Variable manufacturing overhead (based on direct labor hours) Fixed manufacturing overhead $639,200 940,000 units) 1.50 per hr. 0.3 hr 0.45 0.68 Parker Plastic had the following actual results for the past year: 1,020,000 12,900,000 $ 16,770,000 338,000 Number of units produced and sold Number of square feet of plastic used Cost of plastic purchased and used Number of labor hours worked $ 4,258,800 $ Direct labor cost Variable overhead cost 1,760,000 $ 395,000 Fixed overhead cost 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.) F Direct Material Price Variance Direct Material Quantity Variance L
Transcribed Image Text:Parker Plastic, Inc., manufactures plastic mats to use with rolling office chairs. Its standard cost information for last year follows: Standard Standard Standard Price (Rate) $ 1.40 per sq. ft. $ 13.70 per hr. Unit Cost Quantity 10 sq ft. Direct materials (plastic) Direct labor $ 14.00 0.3 hr. 4.11 Variable manufacturing overhead (based on direct labor hours) Fixed manufacturing overhead $639,200 940,000 units) 1.50 per hr. 0.3 hr 0.45 0.68 Parker Plastic had the following actual results for the past year: 1,020,000 12,900,000 $ 16,770,000 338,000 Number of units produced and sold Number of square feet of plastic used Cost of plastic purchased and used Number of labor hours worked $ 4,258,800 $ Direct labor cost Variable overhead cost 1,760,000 $ 395,000 Fixed overhead cost 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.) F Direct Material Price Variance Direct Material Quantity Variance L
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 5 steps with 4 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Value Chain Analysis
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS