5 Parker Plastic, Incorporated, manufactures plastic mats to use with rolling office chairs. Its standard cost information for last year follows: 2 points eBook Direct materials (plastic) Direct labor Variable manufacturing overhead (based on direct labor hours) Fixed manufacturing overhead ($403,040916,000 units) Standard Quantity Standard Price (Rate) 9 square foot 0.3 hour $ 1.08 per square foot $ 11.30 per hour 0.3 hour $ 2.80 per hour Hint Parker Plastic had the following actual results for the past year: Print References 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: 1,100,000 11,700,000 $ 12,870,000 314,000 $ 3,799,400 $ 890,000 $ 371,000 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 Check my work Standard Unit Cost $ 9.72 3.39 0.84 0.44
5 Parker Plastic, Incorporated, manufactures plastic mats to use with rolling office chairs. Its standard cost information for last year follows: 2 points eBook Direct materials (plastic) Direct labor Variable manufacturing overhead (based on direct labor hours) Fixed manufacturing overhead ($403,040916,000 units) Standard Quantity Standard Price (Rate) 9 square foot 0.3 hour $ 1.08 per square foot $ 11.30 per hour 0.3 hour $ 2.80 per hour Hint Parker Plastic had the following actual results for the past year: Print References 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: 1,100,000 11,700,000 $ 12,870,000 314,000 $ 3,799,400 $ 890,000 $ 371,000 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 Check my work Standard Unit Cost $ 9.72 3.39 0.84 0.44
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:5
Parker Plastic, Incorporated, manufactures plastic mats to use with rolling office chairs. Its standard cost information for last year
follows:
2
points
eBook
Direct materials (plastic)
Direct labor
Variable manufacturing overhead (based on direct labor hours)
Fixed manufacturing overhead ($403,040916,000 units)
Standard Quantity
Standard Price (Rate)
9 square foot
0.3 hour
$ 1.08 per square foot
$ 11.30 per hour
0.3 hour
$ 2.80 per hour
Hint
Parker Plastic had the following actual results for the past year:
Print
References
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:
1,100,000
11,700,000
$ 12,870,000
314,000
$ 3,799,400
$ 890,000
$ 371,000
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
Check my work
Standard Unit
Cost
$ 9.72
3.39
0.84
0.44
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