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

Direct labor variance :— It is the difference standard direct labor cost for actual production and…

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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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