E9-3 (Algo) Preparing a Flexible Budget Performance Report [LO 9-2] Gleason Guitars produces acoustic guitars. The table below contains budget and actual information for the month of June: (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).) Actual Costs 285 units Spending Variance Flexible Budget 285 units Volume Variance Master Budget 200 units | $ Direct Material Direct Labor Variable Overhead Fixed Overhead Total Manufacturing Costs 16,100 26,800 8,850 12,100 63,850 14,600 22,600 8,600 11,300 57,100 $ E9-8 (Algo) Calculating Direct Materials Variances [LO 9-3] Parker Plastic, Inc., manufactures plastic mats to use with rolling office chairs. Its standard cost information for last year follows: Direct materials (plastic) Direct labor Variable manufacturing overhead (based on direct labor hours) Fixed manufacturing overhead $599, 040 + 936,000 units) Standard Quantity 8 sq ft. 0.3 hr. 0.3 hr. Standard Price (Rate) $ 1.20 per sq. ft. $13.30 per hr. $ 2.40 per hr. Standard Unit Cost $ 9.60 3.99 0.72 0.64 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 overhead cost 1,300,000 12,700,000 $ 13,970,000 334,000 $ 4,141,600 $ 1,620,000 $ 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).) $ 127,000 Direct Material Price Variance Direct Material Quantity Variance F $ 276,000 U E9-9 (Algo) Calculating Direct Labor Variances [LO 9-4] Parker Plastic, Inc., manufactures plastic mats to use with rolling office chairs. Its standard cost information for last year follows: Direct materials (plastic) Direct labor Variable manufacturing overhead (based on direct labor hours) Fixed manufacturing overhead ($519,680 + 928,000 units) Standard Standard Price Standard Quantity (Rate) Unit Cost 14 sq ft. $ 0.80 per sq. ft. $11.20 0.25 hr. $12.40 per hr. 3.10 0.25 hr. $ 1.60 per hr. 0.40 0.56 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 overhead cost 1,220,000 12,300,000 $ 8,610,000 326,000 $ 3,912,000 $ 1,240,000 $ 383,000 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, and "None" for no effect (i.e., zero variance).) Direct Labor Rate Variance Direct Labor Efficiency Variance $ $ 718,400 X U 33,600 U