Parker Plastic, Incorporated, manufactures plastic mats to use with rolling office chairs. Its standard cost information for last year follows: Standard Price (Rate) $ 1.00 per square foot $ 12.80 per hour $ 2.00 per hour Standard Unit Cost $ 12.00 3.20 0.50 0.60 Direct materials (plastic) Direct labor Variable manufacturing overhead (based on direct labor hours) Fixed manufacturing overhead ($559,200 + 932,000 units) 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: 1,260,000 12,500,000 $ 11,250,000 330,000 $ 4,026,000 $ 1,480,000 $ 387,000 Standard Quantity 12 square foot 0.25 hour 0.25 hour Calculate Parker Plastic's variable overhead rate and efficiency variances and its over- or underapplied variable overhead. 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). Variable Overhead Rate Variance Variable Overhead Efficiency Variance Variable Overhead Spending Variance

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Parker Plastic, Incorporated, manufactures plastic mats to use with rolling office chairs. Its standard cost information for last year
follows:
Standard Price (Rate)
$ 1.00 per square foot
$ 12.80 per hour
$ 2.00 per hour
Standard Unit
Cost
$ 12.00
3.20
0.50
0.60
Direct materials (plastic)
Direct labor
Variable manufacturing overhead (based on direct labor hours)
Fixed manufacturing overhead ($559,200 + 932,000 units)
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:
1,260,000
12,500,000
$ 11,250,000
330,000
$ 4,026,000
$ 1,480,000
$ 387,000
Standard Quantity
12 square foot
0.25 hour
0.25 hour
Calculate Parker Plastic's variable overhead rate and efficiency variances and its over- or underapplied variable overhead.
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).
Variable Overhead Rate Variance
Variable Overhead Efficiency Variance
Variable Overhead Spending Variance
Transcribed Image Text:Parker Plastic, Incorporated, manufactures plastic mats to use with rolling office chairs. Its standard cost information for last year follows: Standard Price (Rate) $ 1.00 per square foot $ 12.80 per hour $ 2.00 per hour Standard Unit Cost $ 12.00 3.20 0.50 0.60 Direct materials (plastic) Direct labor Variable manufacturing overhead (based on direct labor hours) Fixed manufacturing overhead ($559,200 + 932,000 units) 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: 1,260,000 12,500,000 $ 11,250,000 330,000 $ 4,026,000 $ 1,480,000 $ 387,000 Standard Quantity 12 square foot 0.25 hour 0.25 hour Calculate Parker Plastic's variable overhead rate and efficiency variances and its over- or underapplied variable overhead. 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). Variable Overhead Rate Variance Variable Overhead Efficiency Variance Variable Overhead Spending Variance
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