8.00 points E9-6 Calculating Direct Materials Variances [LO 9-3 to use 1.10 per

Question

8.00 points E9-6 Calculating Direct Materials Variances [LO 9-3 to use 1.10 per sq. ft $ 13.20 per hr $ 2.20 per hr $ 13.20 0.55 0.62 12 sq ft. 0.25 hr. Direct labor overhead (based on overhead $579,080 0.25 hr. hours) Parker Plastic had the following actual results for the past year: 1,280,000 12,600,000 S 12,600,000 332,000 S 4,083,600 S 1,589,000 S 389,000 of square feet of plastic used Cost of plastic purchased and used Number of labor hours worked Direct labor cost cost Calculate Parker Plastic's direct materials price and quantity variances. "U" for unfavorablo.) Do not round intermediate calculations. Indicate the effect of each variance by selecting

Explanation / Answer

Direct material price variance = (standard price-actual price)actual quantity

                                           = (1.10*12600000-12600000)

Direct material price variance = 1260000 F

Direct material quantity variance = (standard quantity-actual quantity)standard price

                                               = (1280000*12-12600000)1.1

Direct material quantity variance = 3036000 F

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