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
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
Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter23: Evaluating Variances From Standard Costs
Section: Chapter Questions
Problem 4CMA: JoyT Company manufactures Maxi Dolls for sale in toy stores. In planning for this year, JoyT...
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