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E9-8(Algo) Calculating Direct Materials Variances [LO 9-3] Parker Plastic, Incorporated, manufactures plastic mats...

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Accounting

E9-8(Algo) Calculating Direct Materials Variances [LO 9-3]
Parker Plastic, Incorporated, manufactures plastic mats to use with rolling office chairs. Its standard cost information for last year follows:
Standard Quantity Standard Price (Rate) Standard Unit Cost
Direct materials (plastic)10 square foot $ 1.13 per square foot $ 11.30
Direct labor 0.3 hour $ 11.20 per hour 3.36
Variable manufacturing overhead (based on direct labor hours)0.3 hour $ 3.00 per hour 0.90
Fixed manufacturing overhead ($422,280-: 918,000 units)0.46
Parker Plastic had the following actual results for the past year:
Number of units produced and sold 1,120,000
Number of square feet of plastic used 11,800,000
Cost of plastic purchased and used $ 14,160,000
Number of labor hours worked 316,000
Direct labor cost $ 3,634,000
Variable overhead cost $ 960,000
Fixed overhead cost $ 373,000
Required:
Calculate Parker Plastics direct materials price and quantity variances.
Note: Do not round 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).

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