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

 

Transcribed Image Text:

Direct materials (plastic) Direct labor Variable manufacturing overhead (based on direct labor hours) Fixed manufacturing overhead ($289,280 904,000 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 hours worked Direct labor cost Variable overhead cost Fixed overhead cost 1,200,000 11,100,000 $9,990,000 302,000 $3,110,600 $ 496,000 $ 359,000 Direct Material Price Variance Direct Material Quantity Vanance Standard Quantity 9 square foot 0.25 hour 0.25 hour Standard Price (Rate) per square foot per hour per hour $0.92 $10.40 $ 1.60 Required: Calculate Parker Plastic's direct materials price and quantity 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). Standard Unit Cost $8.28 2.60 0.40 0.32 Direct materials (plastic) Direct labor Variable manufacturing overhead (based on direct labor hours) Fixed manufacturing overhead ($289,280 904,000 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 hours worked Direct labor cost Variable overhead cost Fixed overhead cost 1,200,000 11,100,000 $9,990,000 302,000 $3,110,600 $ 496,000 $ 359,000 Direct Material Price Variance Direct Material Quantity Vanance Standard Quantity 9 square foot 0.25 hour 0.25 hour Standard Price (Rate) per square foot per hour per hour $0.92 $10.40 $ 1.60 Required: Calculate Parker Plastic's direct materials price and quantity 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). Standard Unit Cost $8.28 2.60 0.40 0.32

Answer rating: 100% (QA)

Step 12 Direct material price variance Actual quantity sta... View the full answer