Question
In: Accounting
Parker Plastic, Inc., manufactures plastic mats to use with rolling office chairs. Its standard cost information...
Parker Plastic, Inc., 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) | 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 labor hours) | 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 past
year:
| 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 record
Parker Plastic's direct materials, direct labor, variable overhead,
fixed overhead costs and related variances. Assume the company
purchases raw materials as needed and does not maintain any ending
inventories.
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 and variances.
4. Record the entry for fixed overhead costs and variances.
Solutions
Expert Solution
|
Transaction |
General Journal |
Debit |
Credit |
|
1 |
Cost of Goods Sold |
8486400 |
|
|
Direct Materials Price Variance (11960000*((7893600/11960000)-0.68)) |
239200 |
||
|
Direct Materials Quantity Variance (0.68*(11960000-(1040000*12)) |
353600 |
||
|
Cash or Accounts Payable |
7893600 |
||
|
2 |
Cost of Goods Sold |
8902400 |
|
|
Direct Labor Rate Variance (463000*((4606850/463000)-10.70)) |
347250 |
||
|
Direct Labor Efficiency Variance (10.70*(463000-(1040000*0.8))) |
3948300 |
||
|
Cash or Accounts Payable |
4606850 |
||
|
3 |
Cost of Goods Sold |
707200 |
|
|
Variable Overhead Rate Variance (463000*((439850/463000)-0.85)) |
46300 |
||
|
Variable Overhead Efficiency Variance (0.85*(463000-(1040000*0.8))) |
313650 |
||
|
Cash or Accounts Payable |
439850 |
||
|
4 |
Cost of Goods Sold |
572000 |
|
|
Fixed Overhead Spending Variance (517000-502000) |
15000 |
||
|
Fixed Overhead Volume Variance (0.55*(940000-1040000)) |
55000 |
||
|
Cash or Accounts Payable |
502000 |
ekkarill92 answered 1 month agoRelated Solutions
Parker Plastic, Inc., manufactures plastic mats to use with rolling office chairs. Its standard cost information...
Parker Plastic, Inc., 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)
12
sq ft.
$
1.10
per sq. ft.
$
13.20
Direct labor
0.25
hr.
$
13.20
per hr.
3.30
Variable manufacturing overhead (based on direct labor
hours)
0.25
hr.
$
2.20
per hr.
0.55
Fixed manufacturing overhead ($579,080 ÷ 934,000 units)
0.62
Parker Plastic had the following actual results...
Parker Plastic, Inc., manufactures plastic mats to use with rolling office chairs. Its standard cost information...
Parker Plastic, Inc., 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
sq ft.
$
0.82
per sq. ft.
$
8.20
Direct
labor
0.25
hr.
$
10.20
per hr.
2.55
Variable manufacturing overhead (based on direct labor hours)
0.25
hr.
$
1.40
per hr.
0.35
Fixed
manufacturing overhead $270,600 ÷ 902,000 units)
0.30
Parker Plastic had the following actual results...
Parker Plastic, Inc., manufactures plastic mats to use with rolling office chairs. Its standard cost information...
Parker Plastic, Inc., 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) 9 sq ft. $ 1.30 per sq. ft. $ 11.70
Direct labor 0.3 hr. $ 13.50 per hr. 4.05 Variable manufacturing
overhead (based on direct labor hours) 0.3 hr. $ 1.30 per hr. 0.39
Fixed manufacturing overhead ($619,080 ÷ 938,000 units) 0.66 Parker
Plastic had the following actual results...
Parker Plastic, Inc., manufactures plastic mats to use with rolling office chairs. Its standard cost information...
Parker Plastic, Inc., 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) 8 sq ft. $ 1.02 per sq. ft. $ 8.16
Direct labor 0.3 hr. $ 11.10 per hr. 3.33 Variable manufacturing
overhead (based on direct labor hours) 0.3 hr. $ 2.60 per hr. 0.78
Fixed manufacturing overhead ($383,880 ÷ 914,000 units) 0.42 Parker
Plastic had the following actual results...
Parker Plastic, Inc., manufactures plastic mats to use with rolling office chairs. Its standard cost information...
Parker Plastic, Inc., 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)
12
sq ft.
$
0.61
per sq. ft.
$
7.32
Direct labor
0.1
hr.
$
10.00
per hr.
1.00
Variable manufacturing overhead (based on direct labor
hours)
0.1
hr.
$
0.50
per hr.
0.05
Fixed manufacturing overhead ($160,000 ÷ 800,000 units)
0.20
Parker Plastic had the following actual results...
Parker Plastic, Inc., manufactures plastic mats to use with rolling office chairs. Its standard cost information...
Parker Plastic, Inc., 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)
12
sq ft.
$
0.63
per sq. ft.
$
7.56
Direct
labor
0.2
hr.
$
10.10
per hr.
2.02
Variable manufacturing overhead (based on direct labor hours)
0.2
hr.
$
0.60
per hr.
0.12
Fixed
manufacturing overhead $252,000 ÷ 840,000 units)
0.30
Parker Plastic
had the following actual results...
Parker Plastic, Inc., manufactures plastic mats to use with rolling office chairs. Its standard cost information...
Parker Plastic, Inc., 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) 11 sq ft. $ 0.73 per sq. ft. $ 8.03
Direct labor 0.25 hr. $ 10.40 per hr. 2.60 Variable manufacturing
overhead (based on direct labor hours) 0.25 hr. $ 2.00 per hr. 0.50
Fixed manufacturing overhead $326,880 ÷ 908,000 units) 0.36 Parker
Plastic had the following actual results...
Parker Plastic, Inc., manufactures plastic mats to use with rolling office chairs. Its standard cost information...
Parker Plastic, Inc., 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)
15
sq ft.
$
0.90
per sq. ft.
$
13.50
Direct labor
0.25
hr.
$
12.60
per hr.
3.15
Variable manufacturing overhead
(based on direct labor hours)
0.25
hr.
$
1.80
per hr.
0.45
Fixed manufacturing overhead
$539,400 ÷ 930,000 units)
0.58
Parker Plastic had the following actual results...
Future Plastics, Inc. manufactures plastic mats to use with rolling office chairs. Its standard cost information...
Future Plastics, Inc. manufactures plastic mats to use with
rolling office chairs. Its standard cost information for last year
follows: 12 pts
Standard Quantity Standard Price
Direct Materials 12 sq ft. $0.72 per sq
ft
Direct Labor .25 hour $12.20 per hour
Variable Overhead .15hour $2 per hour
Future Plastic had actual results as follows:
Number of units produced and sold 1,000,000
Number of square feet of plastic used 11,800,000
Cost of Plastic Purchased and used $8,260,000
Number of...
Lee’s Furniture manufactures two types of chairs---recliner and office chair. The following activity and cost information...
Lee’s Furniture manufactures two types of chairs---recliner and
office chair. The following activity and cost information has been
compiled:
Number
of
Number
of
Number of
Product
Setups
Components
Direct Labor Hours
Recliner
5
40
300
Office
chair
8
45
175
Overhead
costs
$80,000
$180,000
Assume a traditional costing system applies the
$260,000 of overhead costs based on direct labor hours.
a. What is the total amount of overhead costs
assigned to the recliner?
b. What is the total amount...
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