D Chapter 9 Horme work × Home l Chegg.com XL D ezto.mheducation.com/hm.tpx 4.00

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D Chapter 9 Horme work × Home l Chegg.com XL D ezto.mheducation.com/hm.tpx 4.00 points E9-7 Calculating Direct Labor Variances [LO 9-4] Parker Plastic, Inc., s plastic mats to use with rolling office chairs. Its standard cost inforrmation for last year follows: Slandard QuantityStandard Price (Rate) Slandard 1.02 per sq. ft. 11.10 per hr. $ 2.60 per hr. Unit Cast 3.33 0.78 0.42 Direct materials (plastic) Direct labor Variable manufacturíng overhead based on S 8.16 8 sq ft, 0.3 hr 0.3 hr. direct labor hours) Fixed manufacturing overhead $383,880 914 ,000 units Parker Plastic had the following actual results for the past year: Number of units produced and sold Number of square teet cf plastic used Cost of plastc purchased and used Number of labor hours worked Direct labor cos 1,080,000 11,600,00O $11,600,000 312,000 $ 3,681,600 $ 800,000 $369,000 ariable overhead cost FIxed overhead cost Required: Calculate Parker Plastic's 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.) Direct Labor Rate Varance Direct Labor Efficiency Variance

Explanation / Answer

Direct labor rate variance = (11.10*312000-3681600) = 218400 U

Direct labor efficiency variance = (1080000*.3-312000)*11.10 = 133200 F

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