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Safari File Edit View History Bookmarks Window Help -es 77% T. * !E ))) Sat Jun 30 4:31 PM Alex C : ezto.mheducation.com Home - alamo.edu Chapter 9 Exercises value: 1111 points Parker Plastic, Inc., manufactures plastic mats to use with rolling office chairs. Its standard cost information for last year follows: Standard Unit Cost 3.10 0.40 0.56 Standar QuantityStandard Price (Rate) 14 sq ft. 0.80 per sq. ft. $11.20 Direct materials (plastic) Direct labor 0.25 hr. Variable manufacturing overhead (bdo0.25 hr $12.40 per hr 1.60 per hr direct labor hours) Fixed manufacturing overhead $519,680 928,000 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 owerhead cost 1,220,000 12,300,000 S 8,610,000 326,000 S 3,912,000 S 1,240,000 S 383,000 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.) Direct Material Price Variance Direct Material Quantity Variance afari.dmg 0

Explanation / Answer

Direct material price variance = (Standard price-actual price)actual qty

= (0.8*123000000-8610000)

Direct material price variance = 1230000 F

Direct material quantity variance = (Standard quantity-actual quanity)Standard price

= (1220000*14-12300000)*.80

Direct material quantity variance = 3824000 F

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