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 15 square foot 0.25 hour Standard Price (Rate) $ 0.90 $ 12.60 Standard Unit Cost per square foot per hour $ 13.50 3.15 0.25 hour $ 1.80 per hour 0.45 0.58 Variable manufacturing overhead (based on direct labor hours) Fixed manufacturing overhead ($539,400 +930,000 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 Required: '1,240,000 12,400,000 $ 9,920,000 328,000 $ 3,968,800 $ 1,350,000 $ 385,000 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 favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Direct Material Price Variance Direct Material Quantity Variance
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 15 square foot 0.25 hour Standard Price (Rate) $ 0.90 $ 12.60 Standard Unit Cost per square foot per hour $ 13.50 3.15 0.25 hour $ 1.80 per hour 0.45 0.58 Variable manufacturing overhead (based on direct labor hours) Fixed manufacturing overhead ($539,400 +930,000 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 Required: '1,240,000 12,400,000 $ 9,920,000 328,000 $ 3,968,800 $ 1,350,000 $ 385,000 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 favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Direct Material Price Variance Direct Material Quantity Variance
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text: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
15 square foot
0.25 hour
Standard Price (Rate)
$ 0.90
$ 12.60
Standard Unit
Cost
per square foot
per hour
$ 13.50
3.15
0.25 hour
$ 1.80
per hour
0.45
0.58
Variable manufacturing overhead (based on direct labor hours)
Fixed manufacturing overhead ($539,400 +930,000 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
Required:
'1,240,000
12,400,000
$ 9,920,000
328,000
$ 3,968,800
$ 1,350,000
$ 385,000
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 favorable, "U" for
unfavorable, and "None" for no effect (i.e., zero variance).
Direct Material Price Variance
Direct Material Quantity Variance
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