Parker Plastic, Inc., manufactures plastic mats to use with rolling office chairs. Its standard cost information for last year follows:StandardQuantity12 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 laborVariable manufacturing overhead(based on direct labor hours)Fixed manufacturing overhead($352,000 880,000 units)Parker Plastic had the following actual results for the past year:Number of units produced and soldNumber of square feet of plastic usedCost of plastic purchased and usedNumber of labor hours workedDirect labor costVariable overhead costFixed overhead cost980,00011,270,000$ 7,100,100289,000Fixed Overhead Spending VarianceFixed Overhead Volume VarianceOver- or Underapplied Fixed Overhead$ 2,832,200$$231,200334,000StandardUnit Cost$7.803.060.210.40Required:Calculate Parker Plastic's fixed overhead spending and volume variances and its over- or underapplied fixed overhead. (Indicate theeffect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).)

The variance is the difference between the actual and standard production cost data. The variance…

Answered: Parker Plastic, Inc., manufactures…

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, 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…
Lamp Light Limited (LLL) manufactures lampshades. It applies variable overhead on the basis of direct labor hours. Information from LLL’s standard cost card follows: Standard Quantity Standard Rate Standard Unit Cost Variable manufacturing overhead 0.6 $0.80 $0.48 During August, LLL had the following actual results: Units produced and sold 26,300 Actual variable overhead $ 9,590 Actual direct labor hours 17,000 Required:Compute LLL’s variable overhead rate variance, variable overhead efficiency variance, and over- or underapplied variable overhead. (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).) How do I figure out the variable overhead rate variance? I thought it's AH*(SR-AR) 17,000 * (.80- 9,590/17000=.56) 17000 * (.80-.56)= 4,080?? It says not correct?
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…
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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…
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
am.111.
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 ($461,000 +922,000 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 S Variable overhead cost Fixed overhead cost 1,160,000 12,000,000 $ 16,800,000 320,000 $ 3,744,000 $ 1,100,000 $377,000 Standard Quantity 12 square foot 0.3 hour Standard Price (Rate) $ 1.45 per square foot $ 11.90 per hour Standard Unit Cost $ 17.40 3.57 0.3 hour $ 2.30 per hour 0.69 0.50 Required: Calculate Parker Plastic's direct materials price and quantity variances. Note: Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for…
2. A company manufacturing two products furnishers the following data for a year: Product Annual Total Total number Total number Output (units) machine of purchase of set ups hours orders A 100 500 50 5 B 75 700 40 10 175 1200 90 15 The annual overheads are as under: Volume related activity costs RO 20000 Set up related costs RO 15000 Purchase related costs RO 35000 Total RO 70000 You are required to calculate the cost per unit of each product A and B based on: a. Traditional method of charging overheads b. Activity based costing method 本本本本本本**本本本本本本本*
Required information [The following information applies to the questions displayed below] Sedona Company set the following standard costs for one unit of its product for this year. Direct material (20 pounds @ $3.30 per pound) Direct labor (15 hours @ $6.00 per DLH) Variable overhead (15 hours @ $2.80 per DLH) Fixed overhead (15 hours @ $1.20 per DLH) Standard cost per unit The $4.00 ($2.80+ $1.20) total overhead rate per direct labor hour (DLH) is based on a predicted activity level of 43,500 units, which is 75% of the factory's capacity of 58,000 units per month. The following monthly flexible budget information is available. Flexible Budget Budgeted production (units) Budgeted direct labor (standard hours) Budgeted overhead. Variable overhead Fixed overhead Total overhead Actual variable overhead: Actual fixed overhead Actual total overhead $ 66.00 90.00 42.00 18.00 $ 216.00 $1,624,000 866,000 $ 2,490,000 Operating Levels (% of capacity) 75% 70% 40,600 609,000 $ 1,705, 200 783,000…
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