Parker Plastic, Inc., manufactures plastic mats to use with rolling office chairs. Its standard cost information for last year follows:StandardUnitCostDirect materials (plastic)Direct laborVariable manufacturing overhead(based on direct labor hours).Fixed manufacturing overhead($308,040 + 906,000 units)StandardQuantity8 sq ft.0.26 hr.0.26 hr.Parker Plastic had the following actual results for the past year:Number of units produced and sold.Number of square feet of plastic usedCost of plastic purchased and usedNumber of labor hours workedDirect labor costVariable overhead costFixed overhead costStandard Price(Rate)$ 0.63 per sq. ft.$10.50 per hr.$ 1.50 per hr.Variable Overhead Rate VarianceVariable Overhead Efficiency VarianceVariable Overhead Spending Variance1,220,00011,200,000$ 6,720,000305,000$ 3,233,000$ 540,000361,000$$5.042.730.390.34Required:Calculate Parker Plastic's variable overhead rate and efficiency variances and its over- or underapplied variable overhead. (Do notround intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and"None" for no effect (i.e., zero variance).) Parker Plastic, Inc., manufactures plastic mats to use with rolling office chairs. Its standard cost information for last year follows:StandardQuantityStandard Price(Rate)StandardUnit Cost$ 5.04$ 0.63 per sq. ft.$10.50 per hr.2.73$ 1.50 per hr.0.39Direct materials (plastic)Direct laborVariable manufacturing overhead(based on direct labor hours)Fixed manufacturing overhead($308,040 906,000 units)8 sq ft.0.26 hr.0.26 hr.Parker Plastic had the following actual results for the past year:Number of units produced and soldNumber of square feet of plastic usedCost of plastic purchased and usedNumber of labor hours workedDirect labor costVariable overhead costFixed overhead costDirect Labor Rate VarianceDirect Labor Efficiency Variance1,220,00011,200,000$ 6,720,000305,000$$ 3,233,000540,000361,000$0.34Required:Calculate Parker Plastic's direct labor rate and efficiency variances. (Do not round intermediate calculations. Indicate the effect ofeach variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).)

The labor variance is the difference between the actual and standard cost of direct labor for the…

Parker Plastic, Inc., manufactures plastic mats to use with rolling office chairs. Its standard cost information for last year follows: Standard Unit Cost Direct materials (plastic) Direct labor Variable manufacturing overhead (based on direct labor hours) Fixed manufacturing overhead ($308,040 906,000 units) Standard Quantity 8 sq ft. 0.26 hr. 0.26 hr. 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 Standard Price (Rate) $ 0.63 per sq. ft. $10.50 per hr. $ 1.50 per hr. 1,220,000 11,200,000 $ 6,720,000 305,000 $ $ $ 3,233,000 540,000 361,000 sss $5.04 2.73 0.39 0.34

Parker Plastic, Inc., manufactures plastic mats to use with rolling office chairs. Its standard cost information for last year follows: Standard Unit Cost Direct materials (plastic) Direct labor Variable manufacturing overhead (based on direct labor hours) Fixed manufacturing overhead ($308,040 906,000 units) Standard Quantity 8 sq ft. 0.26 hr. 0.26 hr. 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 Standard Price (Rate) $ 0.63 per sq. ft. $10.50 per hr. $ 1.50 per hr. 1,220,000 11,200,000 $ 6,720,000 305,000 $ $ $ 3,233,000 540,000 361,000 sss $5.04 2.73 0.39 0.34

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter9: Standard Costing: A Functional-based Control Approach

Section: Chapter Questions

Problem 33P: Business Specialty, Inc., manufactures two staplers: small and regular. The standard quantities of...

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The following product costs are available for Kellee Company on the production of eyeglass frames: direct materials, $32,125; direct labor, $23.50; manufacturing overhead, applied at 225% of direct labor cost; selling expenses, $22,225; and administrative expenses, $31,125. The direct labor hours worked for the month are 3,200 hours. A. What are the prime costs? B. What are the conversion costs? C. What is the total product cost? D. What is the total period cost? E. If 6.425 equivalent units are produced, what is the equivalent material cost per unit? F. What is the equivalent conversion cost per unit?
Algers Company produces dry fertilizer. At the beginning of the year, Algers had the following standard cost sheet: Algers computes its overhead rates using practical volume, which is 54,000 units. The actual results for the year are as follows: a. Units produced: 53,000 b. Direct materials purchased: 274,000 pounds at 2.50 per pound c. Direct materials used: 270,300 pounds d. Direct labor: 40,100 hours at 17.95 per hour e. Fixed overhead: 161,700 f. Variable overhead: 122,000 Required: 1. Compute price and usage variances for direct materials. 2. Compute the direct labor rate and labor efficiency variances. 3. Compute the fixed overhead spending and volume variances. Interpret the volume variance. 4. Compute the variable overhead spending and efficiency variances. 5. Prepare journal entries for the following: a. The purchase of direct materials b. The issuance of direct materials to production (Work in Process) c. The addition of direct labor to Work in Process d. The addition of overhead to Work in Process e. The incurrence of actual overhead costs f. Closing out of variances to Cost of Goods Sold
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