i Preview File Edit View Go Tools Window Help 76 Sat Jun

i Preview File Edit View Go Tools Window Help ? ? 76%)\"-- ??) Sat Jun 30 4:40 PM Alex . ezto.mheducation.com Home alamo.edu McGraw-Hill Connect Chapter 9 Exercises 11.11 points Parker Plastic, Inc., manufactures plastic mats to use with rolling office chairs. Its standard cost information for last year follows: Standard Standard QuantityStandard Price (Rate) 12 sqft. 1.00 per sq. ft. Unit Cost 3.20 0.50 0.60 $ 12.00 Direct materials (plastic) Direct labor 0.25 hr Variable manufacturing overhead(esn0.25 hr. $12.80 per hr $ 2.00 per hr direct labor hours) Fixed manufacturing overhead $559,200 932,000 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 1,260,000 12,500,000 S 11,250,000 330,000 S 4,026,000 S 1,480,000 S 387,000 Calculate Parker Plastic\'s direct labor rate and efficiency variances. (Do not round intermediate calculations. Indicate the effect of each vaiance by selecting \"F\" for favorable, \"U\" for unfavorable.) Direct Labor Rate Variance Direct Labor Efficiency Variance 30 mg 0

Solution

Direct labour rate variance = (12.80*330000-4026000) = 198000 F

Direct labour efficiency variance = (1260000*.25-330000)*12.80 = 192000 U