Parker Plastic, Inc., manufactures plastic mats to use with rolling office chairs. Its standard cost information for last year follows:StandardStandardQuantity12 sq ft.0.25 hr.Standard Price (Rate) Unit Cost$ 1.00 per sq. ft.$12.80 per hr.Direct materials (plastic)$ 12.00Direct labor3.20Variable manufacturing overhead(based on direct labor hours)Fixed manufacturing overhead $559, 200+ 932,000 units)0.25 hr.$ 2.00 per hr.0.500.60Parker 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 cost1,260,00012,500,000$ 11,250,000330,000$ 4,026,000$ 1,480,00024387,000Required:Calculate Parker Plastic's direct materials price and quantity variances. (Do not round intermediate calculations. Indicate the effect ofeach variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).)Direct Material Price VarianceDirect Material Quantity Variance Parker Plastic, Inc., manufactures plastic mats to use with rolling office chairs. Its standard cost information for last year follows:StandardQuantity11 sq ft.StandardStandard Price (Rate) Unit Cost$ 0.73 per sq. ft.$10.40 per hr.Direct materials (plastic)$ 8.03Direct labor0.25 hr.2.60Variable manufacturing overhead(based on direct labor hours)Fixed manufacturing overhead($326,880 + 908,000 units)0.25 hr.$ 2.00 per hr.0.500.36Parker 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 worked1,020,00011,300,000$ 7,910,000306,0003,335,400630,000363,000Direct labor costVariable overhead costFixed overhead costRequired:Calculate Parker Plastic's direct labor rate and efficiency variances. (Do not round intermediate calculations. Indicate the effect ofeach variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).)Direct Labor Rate VarianceDirect Labor Efficiency Variance

Name: Parker Plastic, Inc., manufactures plastic mats to use with rolling o
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Description: Parker Plastic, Inc., manufactures plastic mats to use with rolling office chairs. Its standard cost information for last year follows:StandardStandardQuantity12 sq ft.0.25 hr.Standard Price (Rate) Unit Cost$ 1.00 per sq. ft.$12.80 per hr.Direct mat

Variance analysis is a form of study that looks at the discrepancy between expected and actual data.…

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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 Standard Quantity Standard Price (Rate) Unit Cost 12 sq ft. $ 1.00 per sq. ft. $12.80 per hr. $ 2.00 per hr. Direct materials (plastic) Direct labor $ 12.00 3.20 0.25 hr. Variable manufacturing overhead (based on direct labor hours) Fixed manufacturing overhead $559,200 + 932,000 units) 0.25 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 Number of labor hours worked Direct labor cost Variable overhead cost Fixed overhead cost 1,260,000 12,500,000 $ 11,250,000 330,000 $ 4,026,000 $ 1,480,000 387,000 Required: Calculate Parker Plastic's direct materials price and quantity variances. (Do not round intermediate calculations. Indicate the effec each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).) Direct Material Price Variance titu Maria

Parker Plastic, Inc., manufactures plastic mats to use with rolling office chairs. Its standard cost information for last year follows: Standard Standard Quantity Standard Price (Rate) Unit Cost 12 sq ft. $ 1.00 per sq. ft. $12.80 per hr. $ 2.00 per hr. Direct materials (plastic) Direct labor $ 12.00 3.20 0.25 hr. Variable manufacturing overhead (based on direct labor hours) Fixed manufacturing overhead $559,200 + 932,000 units) 0.25 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 Number of labor hours worked Direct labor cost Variable overhead cost Fixed overhead cost 1,260,000 12,500,000 $ 11,250,000 330,000 $ 4,026,000 $ 1,480,000 387,000 Required: Calculate Parker Plastic's direct materials price and quantity variances. (Do not round intermediate calculations. Indicate the effec each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).) Direct Material Price Variance titu Maria

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Company XYZ uses labor hours to allocate its manufacturing overhead. The direct labor cost rate is $8 per direct labor hour. The company estimates that the number of labor hours to be used next month is 600,000 labor hours. The estimated variable overhead is estimated to be quarter of the direct labor cost rate. The estimated fixed overhead costs are $50,000. Calculate the predetermined overhead rate. а. 4.08 b. 8.08 С. 5.08 d. 2.08 е. None of the given answers
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…
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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 12 sq ft. 0.3 hr. Standard Price (Rate) $ 0.65 per sq. ft. $10.20 per hr. 0.3 hr. $ 0.70 per hr. Direct materials (plastic) Direct labor Variable manufacturing overhead (based on direct labor hours) Fixed manufacturing overhead ($352,000 880,000 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 980,000 11,270,000 $ 7,100,100 289,000 Fixed Overhead Spending Variance Fixed Overhead Volume Variance Over- or Underapplied Fixed Overhead $ 2,832,200 $ $ 231,200 334,000 Standard Unit Cost $7.80 3.06 0.21 0.40 Required: Calculate Parker Plastic's fixed overhead spending and volume variances and its over- or underapplied fixed…