Parker Plastic, Inc., manufactures plastic mats to use with rolling office chairs. Its standard cost...
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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:
Calculate Parker Plastics direct labor rate and efficiency variances. (Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable.)
Standard Quantity 12 Standard Standard Price (Rate) Unit Cost Direct materials (plastic) Direct labor Variable manufacturing overhead (based on 0.72 per sq. ft. $8.64 0.25 hr. 025 hr. $ 12.20 per hr. 1.20 per hr 3.05 0.30 0.42 direct labor hours) Fixed manufacturing overhead (5378,000 900,000 units) 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 1,000,000 11,800,000 $ 8,260,000 245,000 $ 2,891,000 18,500 $ 355,000 Direct Labor Rate Variance Direct Labor Efficiency Variance
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