Answer Happy

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 8 sq ft. $ 1.20 per sq. ft. $ 9.60 0.3 hr. $13.30 per hr. 3.99 Direct materials (plastic) Direct labor Variable manufacturing overhead (based on direct labor hours) Fixed manufacturing overhead $599,040 936,000 units) 0.3 hr. $ 2.40 per hr. 0.72 0.64 Parker Plastic had the following actual results for the past year: Number of units produced and sold 1,300,000 Number of square feet of plastic used Cost of plastic purchased and used Number of labor hours worked 12,700,000 $13,970,000 334,000 Direct labor cost $ 4,141,600 $1,620,000 Variable overhead cost. Fixed overhead cost $ 391,000 Required: Calculate Parker Plastic's direct materials price and quantity variances. (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).) Direct Material Price Variance Direct Material Quantity Variance