Question

Parker Plastic, Inc., manufactures plastic mats to use with rolling office chairs. Its standard cost information for last year follows:


Parker Plastic had the following actual results for the past year:
Number of units produced and sold ..... 1,000,000
Number of square feet of plastic used .... 11,800,000
Cost of plastic purchased and used ...... $ 8,260,000
Number of labor hours worked ...... 245,000
Direct labor cost ............. $ 2,891,000
Variable overhead cost ......... $ 318,500
Fixed overhead cost ........... $ 355,000

Required:
Calculate Parker Plastic’s direct materials price and quantityvariances.


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  • CreatedFebruary 27, 2015
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