Parker Plastic, Inc., manufactures plastic mats to use with
rolling office chairs. Its standard cost information for last year
follows:
Standard Quantity | Standard Price (Rate) | Standard Unit Cost | ||||||
Direct materials (plastic) | 12 | sq ft. | $ | 0.83 | per sq. ft. | $ | 9.96 | |
Direct labor | 0.25 | hr. | $ | 10.50 | per hr. | 2.62 | ||
Variable manufacturing overhead (based on direct labor hours) | 0.25 | hr. | $ | 2.20 | per hr. | 0.55 | ||
Fixed manufacturing overhead $345,800 ÷ 910,000 units) | 0.38 | |||||||
Parker Plastic had the following actual results for the past
year:
Number of units produced and sold | 1,040,000 | |
Number of square feet of plastic used | 11,400,000 | |
Cost of plastic purchased and used | $ | 9,120,000 |
Number of labor hours worked | 308,000 | |
Direct labor cost | $ | 3,449,600 |
Variable overhead cost | $ | 689,000 |
Fixed overhead cost | $ | 365,000 |
Calculate Parker Plastic’s direct materials price and quantity variances. (Do not round intermediate calculations. Indicate the effect of each variance by selecting favorable, unfavorable, or no effect (i.e., zero variance).)
Direct Material Price Variance = (Actual price - standard price)
x actual quantity purchased
= ($0.80 - $0.83) x 11400000 = $342000 (F)
Actual Price = $9120000 / 11400000 = $0.80
Direct Material Quantity Variance = (Actual quantity - standard
quantity) x Standard Price
= (11400000 - 12480000) x $0.83 = $896400 (F)
Standard Quantity = 1040000 x 12 = 12480000
Parker Plastic, Inc., manufactures plastic mats to use with rolling office chairs. Its standard cost information...
Parker Plastic, Inc., 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 $345,880 • 910,000 units) Standard Quantity 12 sq ft. 0.25 hr. 0.25 hr. Standard Standard Price (Rate) Unit Cost $ 0.83 per sq. ft. $ 9.96 $19.50 per hr. 2.62 $ 2.20 per hr. 2.55 8.38 Parker Plastic had the following actual results for...
33 E9-8 (Algo) Calculating Direct Materials Variances [LO 9-3) Parker Plastic, Inc., manufactures plastic mats to use with rolling office chairs. Its standard cost information for last year follows: 10 points Standard Unit Cost $9.96 2.62 Standard Standard Price Quantity 12 sq ft. 0.25 hr (Rate) 0.83 per sq. ft. $10.50 per hr. Direct materials (plastic) Direct labor variable manufacturing overhead (based on direct labor hours) Fixed manufacturing overhead $345,800 910,000 units) Skipped $2.20 per hr. 0.55 0.25 hr. 0.38...
Parker Plastic, Inc., manufactures plastic mats to use with rolling office chairs. Its standard cost information for last year follows: Standard Quantity Standard Price (Rate) Standard Unit Cost Direct materials (plastic) 12 sq ft. $ 0.72 per sq. ft. $8.64 Direct labor 0.25 hr. $ 12.20 per hr. 3.05 Variable manufacturing overhead (based on direct labor hours) 0.25 hr. $ 1.20 per hr. 0.30 Fixed manufacturing overhead ($378,000 ÷ 900,000 units) 0.42 Parker Plastic had the following actual results for...
Parker Plastic, Inc., manufactures plastic mats to use with rolling office chairs. Its standard cost information for last year follows: Standard Quantity Standard Price (Rate) Standard Unit Cost Direct materials (plastic) 12 sq ft. $ 1.00 per sq. ft. $ 12.00 Direct labor 0.25 hr. $ 12.80 per hr. 3.20 Variable manufacturing overhead (based on direct labor hours) 0.25 hr. $ 2.00 per hr. 0.50 Fixed manufacturing overhead $559,200 ÷ 932,000 units) 0.60 Parker Plastic had the following actual results...
Parker Plastic, Inc., manufactures plastic mats to use with rolling office chairs. Its standard cost information for last year follows: Standard Quantity Standard Price (Rate) Standard Unit Cost Direct materials (plastic) 10 sq ft. $ 0.82 per sq. ft. $ 8.20 Direct labor 0.25 hr. $ 10.20 per hr. 2.55 Variable manufacturing overhead (based on direct labor hours) 0.25 hr. $ 1.40 per hr. 0.35 Fixed manufacturing overhead $270,600 ÷ 902,000 units) 0.30 Parker Plastic had the following actual results...
Parker Plastic, Inc., manufactures plastic mats to use with rolling office chairs. Its standard cost information for last year follows: Standard Quantity Standard Price Standard Unit Cost Direct materials (Plastic) 10 Sq Ft 0.82 per square feet 8.20 Direct Labor 0.25 hr 10.20 per hours 2.55 VMOH 0.25 hr 1.40 per hour 0.35 Fixed MOH 0.30 Number of Units Produced and Sold 1,020,000 Number of square feet of Plastic used 11,000,000 Cost of Plastic Purchased and used 8,800,000 Number of...
Parker Plastic, Inc., manufactures plastic mats to use with rolling office chairs. Its standard cost information for last year follows: Standard Quantity Standard Price (Rate) Standard Unit Cost Direct materials (plastic) 8 sq ft. $ 0.63 per sq. ft. $ 5.04 Direct labor 0.26 hr. $ 10.50 per hr. 2.73 Variable manufacturing overhead (based on direct labor hours) 0.26 hr. $ 1.50 per hr. 0.39 Fixed manufacturing overhead $308,040 ÷ 906,000 units) 0.34 Parker Plastic had the following actual results...
Parker Plastic, Inc., manufactures plastic mats to use with rolling office chairs. Its standard cost information for last year follows: Standard Quantity Standard Price (Rate) Standard Unit Cost Direct materials (plastic) 11 sq ft. $ 1.26 per sq. ft. $ 13.86 Direct labor 0.3 hr. $ 11.70 per hr. 3.51 Variable manufacturing overhead (based on direct labor hours) 0.3 hr. $ 2.10 per hr. 0.63 Fixed manufacturing overhead $441,600 ÷ 920,000 units) 0.48 Parker Plastic had the following actual results...
Parker Plastic, Inc., manufactures plastic mats to use with rolling office chairs. Its standard cost information for last year follows: Standard Quantity Standard Price (Rate) Standard Unit Cost Direct materials (plastic) 8 sq ft. $ 0.63 per sq. ft. $ 5.04 Direct labor 0.26 hr. $ 10.50 per hr. 2.73 Variable manufacturing overhead (based on direct labor hours) 0.26 hr. $ 1.50 per hr. 0.39 Fixed manufacturing overhead $308,040 ÷ 906,000 units) 0.34 Parker Plastic had the following actual results...
Parker Plastic, Inc., manufactures plastic mats to use with rolling office chairs. Its standard cost information for last year follows: Standard Quantity Standard Price (Rate) Standard Unit Cost Direct materials (plastic) 9 sq ft. $ 1.30 per sq. ft. $ 11.70 Direct labor 0.3 hr. $ 13.50 per hr. 4.05 Variable manufacturing overhead (based on direct labor hours) 0.3 hr. $ 1.30 per hr. 0.39 Fixed manufacturing overhead $619,080 ÷ 938,000 units) 0.66 Parker Plastic had the following actual results...