Parker Plastic, Inc., manufactures plastic mats to use withrolling office chairs. Its standard cost information for last yearfollows:
| Standard Quantity | Standard Price (Rate) | Standard Unit Cost |
| Direct materials (plastic) | 12 | sq ft. | $ | 0.68 | per sq. ft. | $ | 8.16 |
| Direct labor | 0.8 | hr. | $ | 10.70 | per hr. | | 8.56 |
| Variable manufacturing overhead (based on direct laborhours) | 0.8 | hr. | $ | 0.85 | per hr. | | 0.68 |
| Fixed manufacturing overhead $517,000 ÷ 940,000 units) | | | | | | | 0.55 |
|
Parker Plastic had the following actual results for the pastyear:
| | |
| Number of units produced and sold | | 1,040,000 |
| Number of square feet of plastic used | | 11,960,000 |
| Cost of plastic purchased and used | $ | 7,893,600 |
| Number of labor hours worked | | 463,000 |
| Direct labor cost | $ | 4,606,850 |
| Variable overhead cost | $ | 439,850 |
| Fixed overhead cost | $ | 502,000 |
|
Required:
1, 2, 3, & 4. Prepare the journal entry to recordParker Plastic's direct materials, direct labor, variable overhead,fixed overhead costs and related variances. Assume the companypurchases raw materials as needed and does not maintain any endinginventories.
1. Record entry for direct materials costs and variances.
2. Record entry for direct labor costs and variances.
3. Record the entry for variable overhead costs andvariances.
4. Record the entry for fixed overhead costs and variances.
