Parker Plastic, Inc., manufactures plastic mats to use with rolling office chairs. Its standard cost information for last year follows: Standard Quantity 9 sq ft. 0.3 hr. Standard Standard Price (Rate) $ 1.08 per sq. ft. $ 11.30 per hr. Unit Cost Direct materials (plastic) $9.72 Direct labor 3.39 Variable manufacturing overhead (based on direct labor hours) Fixed manufacturing overhead $403,040 916,000 units) $ 2.80 per hr. 0.3 hr. 0.84 0.44 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 1,100,000 11,700,000 $ 12,870,000 314,000 $ Direct labor cost 3,799,400 $ 890,000 Variable overhead cost $ Fixed overhead cost 371,000 Required: Calculate Parker Plastic's variable overhead rate and efficiency variances and its over- or underapplied variable overhead. (Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for Favorable/Overapplied and "U" for Unfavorable/Underapplied.) Variable Overhead Rate Variance Variable Overhead Efficiency Variance F Variable Overhead Spending Variance tA EA EA

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Parker Plastic, Inc., manufactures plastic mats to use with rolling office chairs. Its standard cost information for last year follows:
Standard
Quantity
9 sq ft.
0.3 hr.
Standard
Standard Price (Rate)
$ 1.08 per sq. ft.
$ 11.30 per hr.
Unit Cost
Direct materials (plastic)
$9.72
Direct labor
3.39
Variable manufacturing overhead (based on
direct labor hours)
Fixed manufacturing overhead $403,040
916,000 units)
$ 2.80 per hr.
0.3 hr.
0.84
0.44
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
1,100,000
11,700,000
$ 12,870,000
314,000
$
Direct labor cost
3,799,400
$
890,000
Variable overhead cost
$
Fixed overhead cost
371,000
Required:
Calculate Parker Plastic's variable overhead rate and efficiency variances and its over- or underapplied variable overhead. (Do not round intermediate calculations. Indicate the effect of each variance by
selecting "F" for Favorable/Overapplied and "U" for Unfavorable/Underapplied.)
Variable Overhead Rate Variance
Variable Overhead Efficiency Variance
F
Variable Overhead Spending Variance
tA EA EA
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Transcribed Image Text

Parker Plastic, Inc., manufactures plastic mats to use with rolling office chairs. Its standard cost information for last year follows: Standard Quantity 9 sq ft. 0.3 hr. Standard Standard Price (Rate) $ 1.08 per sq. ft. $ 11.30 per hr. Unit Cost Direct materials (plastic) $9.72 Direct labor 3.39 Variable manufacturing overhead (based on direct labor hours) Fixed manufacturing overhead $403,040 916,000 units) $ 2.80 per hr. 0.3 hr. 0.84 0.44 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 1,100,000 11,700,000 $ 12,870,000 314,000 $ Direct labor cost 3,799,400 $ 890,000 Variable overhead cost $ Fixed overhead cost 371,000 Required: Calculate Parker Plastic's variable overhead rate and efficiency variances and its over- or underapplied variable overhead. (Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for Favorable/Overapplied and "U" for Unfavorable/Underapplied.) Variable Overhead Rate Variance Variable Overhead Efficiency Variance F Variable Overhead Spending Variance tA EA EA

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