Parker Plastic, Incorporated, manufactures plastic mats to use with rolling office chairs. Its standard cost information for last year follows: Direct materials (plaatie) Direct labor Variable manufacturing overhead (based on direct labor hours) Fixed manufacturing overhead ($308,040 906,000 unita) 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 plastie purchased and used Number of labor hours worked Direct labor cost Variable overhead coat Pixed overhead cont 1,220,000 11,200,000 $6,720,000 305,000 $3,233,000 $540,000 $361,000 Required: Calculate Parker Plastic's direct materials price and quantity variances. Direct Material Price Variance Direct Material Quantity Variance Standard Quantity 8 square foot 0.26 hour 0.26 hour Standard Price (Rate) $0.63 per aquare foot $10.50 $ 1.50 per hour per hour 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 (1.e., zero variance). Standard GaiN CONS $5.04 2.73 0.39 0.34
Parker Plastic, Incorporated, manufactures plastic mats to use with rolling office chairs. Its standard cost information for last year follows: Direct materials (plaatie) Direct labor Variable manufacturing overhead (based on direct labor hours) Fixed manufacturing overhead ($308,040 906,000 unita) 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 plastie purchased and used Number of labor hours worked Direct labor cost Variable overhead coat Pixed overhead cont 1,220,000 11,200,000 $6,720,000 305,000 $3,233,000 $540,000 $361,000 Required: Calculate Parker Plastic's direct materials price and quantity variances. Direct Material Price Variance Direct Material Quantity Variance Standard Quantity 8 square foot 0.26 hour 0.26 hour Standard Price (Rate) $0.63 per aquare foot $10.50 $ 1.50 per hour per hour 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 (1.e., zero variance). Standard GaiN CONS $5.04 2.73 0.39 0.34
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education