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) $ 1.40 per sq. ft. $ 13.70 per hr. Unit Cost Quantity 10 sq ft. Direct materials (plastic) Direct labor $ 14.00 0.3 hr. 4.11 Variable manufacturing overhead (based on direct labor hours) Fixed manufacturing overhead $639,200 940,000 units) 1.50 per hr. 0.3 hr 0.45 0.68 Parker Plastic had the following actual results for the past year: 1,020,000 12,900,000 $ 16,770,000 338,000 Number of units produced and sold Number of square feet of plastic used Cost of plastic purchased and used Number of labor hours worked $ 4,258,800 $ Direct labor cost Variable overhead cost 1,760,000 $ 395,000 Fixed overhead cost Required: Calculate Parker Plastic's direct materials price and quantity variances. (Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable.) F Direct Material Price Variance Direct Material Quantity Variance L

Question

I need help solving this problem

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)
$ 1.40 per sq. ft.
$ 13.70 per hr.
Unit Cost
Quantity
10 sq ft.
Direct materials (plastic)
Direct labor
$ 14.00
0.3 hr.
4.11
Variable manufacturing overhead (based on
direct labor hours)
Fixed manufacturing overhead $639,200
940,000 units)
1.50 per hr.
0.3 hr
0.45
0.68
Parker Plastic had the following actual results for the past year:
1,020,000
12,900,000
$ 16,770,000
338,000
Number of units produced and sold
Number of square feet of plastic used
Cost of plastic purchased and used
Number of labor hours worked
$
4,258,800
$
Direct labor cost
Variable overhead cost
1,760,000
$
395,000
Fixed overhead cost
Required:
Calculate Parker Plastic's direct materials price and quantity variances. (Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable.)
F
Direct Material Price Variance
Direct Material Quantity Variance
L
Expand
Transcribed Image Text

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) $ 1.40 per sq. ft. $ 13.70 per hr. Unit Cost Quantity 10 sq ft. Direct materials (plastic) Direct labor $ 14.00 0.3 hr. 4.11 Variable manufacturing overhead (based on direct labor hours) Fixed manufacturing overhead $639,200 940,000 units) 1.50 per hr. 0.3 hr 0.45 0.68 Parker Plastic had the following actual results for the past year: 1,020,000 12,900,000 $ 16,770,000 338,000 Number of units produced and sold Number of square feet of plastic used Cost of plastic purchased and used Number of labor hours worked $ 4,258,800 $ Direct labor cost Variable overhead cost 1,760,000 $ 395,000 Fixed overhead cost Required: Calculate Parker Plastic's direct materials price and quantity variances. (Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable.) F Direct Material Price Variance Direct Material Quantity Variance L

Expert Answer

Want to see the step-by-step answer?

Check out a sample Q&A here.

Want to see this answer and more?

Experts are waiting 24/7 to provide step-by-step solutions in as fast as 30 minutes!*

*Response times may vary by subject and question complexity. Median response time is 34 minutes for paid subscribers and may be longer for promotional offers.
Tagged in
Business
Accounting

Related Accounting Q&A

Find answers to questions asked by students like you.

Q: Support Department Cost Allocation—Reciprocal Services Method Blue Africa Inc. produces laptops and ...

A: Click to see the answer

Q: At the end of the current year. Accounts Receivable has a balance of $4,375,000; Allowance for Doubt...

A: Accounts receivable is the sum owed to an organization in lieu of the products or services provided ...

Q: A physical inventory of Liverpool Company taken at December 31 reveals the following.          Pe...

A: Hence, $324,136 is total amount of cost or market whichever is lower

Q: St.Ivory Hospital has been hit with a number of complaints about its food service from patients, emp...

A: Current Cost Structure

Q: In November 2018, Simon pays $6,200 to take a course to improve his job skills to qualify for a new ...

A: This falls under American opportunity credit and lifetime learning credit. Lifetime learning credit ...

Q: Classifying Liability-Related Accounts into Balance Sheet or Income StatementIndicate the proper fin...

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and s...

Q: Exercise 9-02 Adama Company incurred the following costs.Indicate to which account Adama would debi...

A: Rules of Debit and Credit:  Debit an increase in asset account, increase in expense account, decreas...

Q: My text book is  Hospitality Industry Financial Accounting (4th edition). I am in chapter 10 -- INVE...

A: Weighted average method helps in valuation of stock and decides the average cost of stock based on t...

Q: Perpetual Inventory Using LIFO Beginning inventory, purchases, and sales data for DVD players are as...

A: Perpetual Inventory System: Perpetual Inventory System refers to the inventory system that maintains...

Q: How do I go about finding the ending inventory using the lifo method?

A: In LIFO method, the inventory received last is despatched first and the ending inventory comprises o...

Q: how would i find the total cost of budget purchases for the following problem?

A: Budgeted purchase:Budgeted purchase is the amount of purchase that company should make during the bu...

Q: Bramble Corp. has two divisions; Sporting Goods and Sports Gear. The sales mix is 70 % for Sporting ...

A: The contribution of the average amount which is made by the group of product and services for paying...

Q: Specialty Manufacturing estimated that its total payroll for the coming year would be $482,500. The ...

A: Click to see the answer

Q: Problem 9-03A Sunland Company had the following assets on January 1, 2022. Item   Cost   Purchas...

A: Prepare journal entry for depreciation of machinery.

Q: Danube, Toggle, and ConnectOn rely on various intangible assets to operate their businesses. These c...

A: Determine the impact of amortization on company\'s income from operation in the current year.

Q: During 2019, Basler Manufacturing produced 60,000 units and sold 55,000 for $10 per unit. Variable m...

A: Variable costing income statement.Variable costing income statement refers to an income statement th...

Q: By December 31, 2017, Culver Corporation had performed a significant amount of environmental consult...

A: Pass a journal entry in the books of Culver Corporation for the fiscal year ended December 31, 2017.

Q: Please solve the following calculation and describe in steps how you solved it Revenues for 2028 $30...

A: Statement of Retained Earning is a financial statement that represents the changes to the retained e...

Q: Kinsella Inc. has a gross payroll of $13,500 for the pay period. The entire payroll is subject to So...

A: Prepare journal entry to record wages and liabilites: 

Q: Marina Manufacturing is considering buying new equipment for its factory. The new equipment will red...

A: Compute degree of operating leverage before purchase of new equipment as shown below:

Q: Number 6 Tasty Time Cafeteria operates cafeteria food services in public buildings in the Midwest. T...

A: Requirement A: Compute the degree of operating leverage of Tasty Time Cafeteria for both personnel s...

Q: Clayborn Company' bank reconciliation as of May 31 is shown below. Bank balance $15,800 Book balance...

A: The only adjusting entry that will be passed is bank service fees for $25 charged by the bank for th...

Q: On December 31, 2011,  the unadjusted trial balance of Pete Inc., included the following accounts:  ...

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and s...

Q: 3. Homework Chapter 10

A: Stockholders’ equity is the measure of assets staying in a business after the sum total of the liabi...

Q: Recording Purchase and Sales Transactions Raymond Company and Geeslin Company both use a perpetual i...

A: Journal entry is prepared to record the day-to-day transactions of an organization. It includes reco...

Q: Break-even sales and sales to realize operating income For the current year ended March 31, Cosgrove...

A: Hence, 20,300 units is the breakeven sales  which is calculated by dividing total fixed costs with t...

Q: Lease or sell Plymouth Company owns equipment with a cost of $550,000 and accumulated depreciation o...

A: Difference between Lease and Sale:Leasing is an arrangement wherein the owner of the asset permits a...

Q: Break-Even Sales Currently, the unit selling price of a product is $290, the unit variable cost is $...

A: Calculate break-even point in units.

Q: Munoz Corporation incurs the following annual fixed costs: Item Cost $ 62,000 Depreciation Officers'...

A: In order to compute the fixed cost per unit, the total annual fixed cost needs to be determined. The...

Q: Waterway Company uses a periodic inventory system. For April, when the company sold 650 units, the f...

A: To ascertain the weighted average cost per unit the Cost of goods available for sale are divided by ...

Q: Federal Income Tax WithholdingBob Browning's weekly gross earnings for the present week were $2,770....

A: Calculate the amount of federal income tax with holdings:

Q: The following pertains to the cost of H’s only inventory item:   Inventory on hand, January 1      ...

A: Calculate the cost of goods sold, gross profit and ending inventory using LIFO method.

Q: Alex Kelton recently won the jackpot in the Colorado lottery while he was visiting his parents. When...

A: Payout Option 1: Receive $100,000,000 in cash today. The present value of $100,000,000 today is $100...

Q: On January 1, 2021, Glanville Company sold goods to Otter Corporation. Otter signed an installment n...

A: Sales revenue: The amount earned by selling goods or services is known as sales revenue. This is the...

Q: Please tell if the following are Assets, liabilities, or equity 1) accounts receivable 2) Smith, cap...

A: Balance sheet is a financial statement that depicts the value of assets, liabilities and capital as ...

Q: Accrued business income (except rent) $464,200 Accrued business expenses (except rent) 348,150 R...

A: Net income of a business refers to the total earning of a company after deducting all the expenses i...

Q: 1-1 Please state what financial statement each of the following go on 1) Net cash flows from operati...

A: Financial Statements are the formal records of the financial activities and position of a business, ...

Q: 6. Homework Chapter 10

A: March 1 Journal entry:

Q: Bramble Corp. sells its product for $60 per unit. During 2019, it produced 60000 units and sold 5000...

A: Calculate the unit cost and the cost for 50,000 units.

Q: The following is a list of account titles and amounts (in millions) reported at December 27, 2015, b...

A: Balance sheet refers to the statement of a company which shows the total value of liabilities & ...

Q: A sales invoice included the following information: merchandise price, $6,000; terms 2/10, n/eom. As...

A: Formula to calculate cash received by the seller:Cash received by seller = Merchandise price - (Merc...

Q: Record the January 1 credit balance of $54,200 in a T account for Allowance for Doubtful Accounts.

A: Allowance for Doubtful Accounts:This is a contra asset account to the Accounts Receivables account t...

Q: What financial statement are the following posted on? 1) Net cash flows from operations 2) Sales 3) ...

A: Financial Statements are reports that convey the business activities and financial performance of th...

Q: My text book is  Hospitality Industry Financial Accounting (4th edition). I am in chapter 10 -- INVE...

A: Effect of errors on cost of goods sold (COGS) and net income:

Q: Proceeds from Notes PayableOn May 15, Maynard Co. borrowed cash from Texas Bank by issuing a 120-day...

A: Notes payable is a liability account. It records the face value of the promissory notes that a compa...

Q: Arizona Corp. acquired the business Data Systems for $320,000 cash and assumed all liabilities at th...

A: a. Calculate the goodwill for Arizona Corporation.

Q: taxpayer who has the following transactions during the current calendar tax year: Accrued bus...

A: Compute Geraldine’s net income from her business for current year as shown below:

Q: J & G Manufacturing makes a single product by way of three separate processes. Details ofproduct...

A: Calculate the normal loss in kg.

Q: At​ year-end, StickStick has cash of $ 22 comma 000$22,000​, current accounts receivable of $ 80 com...

A: Calculate the receivables turnover ratio.

Q: Luke Company sold some machinery to View Company on January 1, 2017, for which the cash selling pric...

A: Meaning of Amortization:Amortization is the process in which the amount paid in the installment of t...