Parker Plastic, Inc., manufactures plastic mats to use with rolling office chairs. Its standard cost information for last year follows: Standard Quantity 11 sq ft. 0.3 hr. 0.3 hr. Direct materials (plastic) Direct labor Variable manufacturing overhead (based on direct labor hours) Fixed manufacturing overhead $441,600 + 920,000 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 Standard Standard Price (Rate) Unit Cost $ 1.26 per sq. ft. $13.86 $11.70 per hr. 3.51 $ 2.10 per hr. 0.63 Cost of plastic purchased and used Number of labor hours worked Direct labor cost Variable overhead cost Fixed overhead cost 1,140,000 11,900,000 $ 15,470,000 318,000 $ 3,688,800 $ 1,030,000 375,000 $ 0.48

Parker Plastic, Inc., manufactures plastic mats to use with rolling office chairs. Its standard cost information for last year follows: Standard Quantity 11 sq ft. 0.3 hr. 0.3 hr. Direct materials (plastic) Direct labor Variable manufacturing overhead (based on direct labor hours) Fixed manufacturing overhead $441,600 + 920,000 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 Standard Standard Price (Rate) Unit Cost $ 1.26 per sq. ft. $13.86 $11.70 per hr. 3.51 $ 2.10 per hr. 0.63 Cost of plastic purchased and used Number of labor hours worked Direct labor cost Variable overhead cost Fixed overhead cost 1,140,000 11,900,000 $ 15,470,000 318,000 $ 3,688,800 $ 1,030,000 375,000 $ 0.48

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Question

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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).)

Parker Plastic, Inc., manufactures plastic mats to use with rolling office chairs. Its standard cost information for last year follows:
Standard
Quantity
11 sq ft.
0.3 hr.
0.3 hr.
Direct materials (plastic)
Direct labor
Variable manufacturing overhead
(based on direct labor hours)
Fixed manufacturing overhead $441,600
+ 920,000 units)
Standard
Standard Price (Rate) Unit Cost
$ 1.26 per sq. ft. $ 13.86
$11.70 per hr.
3.51
$ 2.10 per hr.
0.63
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
1,140,000
11,900,000
$ 15,470,000
318,000
$ 3,688,800
$
1,030,000
$
375,000
0.48

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