Parker Plastic, Incorporated, manufactures plastic mats to use with rolling office chairs. Its standard cost information forlast year follows:Direct materials (plastic)Direct laborVariable manufacturing overhead (based ondirect labor hours)Fixed manufacturing overhead ($639,200 +940,000 units)Parker Plastic had the following actual results for the past year.Number of units produced andsoldNumber of square feet ofplastic usedCost of plastic purchasedand usedNumber of labor hours workedDirect labor costVariable overhead costFixed overhead cost1,020,00012,900,000$Direct Labor Rate VarianceDirect Labor EfficiencyVariance16,770,000338,000$ 4,258,800$ 1,760,000$ 395,000Required: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).Answer is complete but not entirely correct.|$1.253.000U1,760,000Standard Quantity Standard Price (Rate)10 squareper squarefootfoot$ 1.400.3 hour$ 13.70 per hour0.3 hour$ 1.50 per hourStandardUnit Cost$14.004.110.450.68

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Description: Parker Plastic, Incorporated, manufactures plastic mats to use with rolling office chairs. Its standard cost information forlast year follows:Direct materials (plastic)Direct laborVariable manufacturing overhead (based ondirect labor hours)Fixed man

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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 ($639,200 + 940,000 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 hour worked Direct labor cost Variable overhead cost Fixed overhead cost 1,020,000 12,900,000 $ 16,770,000 338,000 $ 4,258,800 $ 1,760,000 $ 395,000 Direct Labor Rate Variance Direct Labor Efficiency Variance Required: Calculate Parker Plastic's direct labor rate and efficiency variances. Standard Quantity Standard Price (Rate) 10 square foot $ 1.40 per square foot $ 13.70 per hour $ 1.50 per hour Answer is complete but not entirely correct. 1.253.000 1,760,000 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 (Le., zero variance). 0.3 hour 0.3 hour Standard Unit Cost $ 14.00 4.11 0.45 0.68

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 ($639,200 + 940,000 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 hour worked Direct labor cost Variable overhead cost Fixed overhead cost 1,020,000 12,900,000 $ 16,770,000 338,000 $ 4,258,800 $ 1,760,000 $ 395,000 Direct Labor Rate Variance Direct Labor Efficiency Variance Required: Calculate Parker Plastic's direct labor rate and efficiency variances. Standard Quantity Standard Price (Rate) 10 square foot $ 1.40 per square foot $ 13.70 per hour $ 1.50 per hour Answer is complete but not entirely correct. 1.253.000 1,760,000 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 (Le., zero variance). 0.3 hour 0.3 hour Standard Unit Cost $ 14.00 4.11 0.45 0.68

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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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 Standard Price (Rate) Unit Cost Direct materials (plastic) Direct labor Variable manufacturing overhead (based on direct labor hours) Fixed manufacturing overhead (S378,800 + 900,000 units) Quantity 12 sq ft. $0.72 per sq. ft. 0.25 hr. $8.64 $12.20 per hr. 3.05 0.25 hr. $1.20 per hr. 0.30 0.42 Parker Plastic had the following actual results for the past year: tes 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 1,000,000 11,800,000 $ 8,260,000 245,000 $2,891,000 318,500 355,000 Required: Calculate Parker Plastic's variable overhead rate and efficiency variances and its over- or underapplied varlable overhead. (Do not round intermediate calculetions. (Indicate the effect of each veriance by…
Marj Co. uses a standard cost system and has the following standard variable costs. Direct Materials P6.00 per meter Direct Labor ? Variable Factory Overhead P3.00 per direct labor hour Factory overhead is applied to production based on direct labor hours. During the month of February, 5,000 units were produced and sold to customers. The following are the selected production data for the month: Materials Used Direct Labor Variable FOH Standard Cost Allowed $84,000 $52,500 $21,000 Actual Cost Incurred $75,000 ? $18,000 Materials Quantity Variance $6,000 U Actual Direct Labor Hours 7,500 hours Standard FOH rate per direct labor hour 3.00/hr. Standard Price per Meter 6.00 per meter The difference between the standard and actual cost per unit produced is P0.15 favorable. Requirements: 1. Standard Quantity per Unit 2. Material Price Variance
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