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 Direct materials (plastic) Direct labor 13 square foot 0.3 hour Variable manufacturing overhead (based on direct labor hours) Fixed manufacturing overhead ($480,480 924,000 units) 0.3 hour Standard Price (Rate) $ 1.55 $ 12.10 $ 1.20 Standard Unit Cost per square foot per hour per hour $ 20.15 3.63 0.36 0.52 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 Required: 1,180,000 12,100,000 $ 18,150,000 322,000 $ 3,799,600 $ 1,200,000 $ 379,000 Calculate Parker Plastic's 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). Direct Material Price Variance Direct Material Quantity Variance