Direct materials (plastic) Direct labor Variable manufacturing overhead (based on direct labor hours) Fixed manufacturing overhead ($289,280 + 904,000 units) actual results for the past year: Standard Quantity 0.25 0.25 Standard Price (Rate) square foot hour hour 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 Standard Unit Cost $ 0.92 $ 10.40 $ 1.60 per square foot per hour per hour Variable overhead cost Calculate Parker Plastic's variable overhead rate and efficiency variances and its over- or underapplied variable overhead.Fixed overhead cost $ 8.28 2.60 0.40 0.32 1,200,000 11,100,000 $ 9,990,000 302,000 $ 3,110,600 $ 496,000 $ 359,000
Direct materials (plastic) Direct labor Variable manufacturing overhead (based on direct labor hours) Fixed manufacturing overhead ($289,280 + 904,000 units) actual results for the past year: Standard Quantity 0.25 0.25 Standard Price (Rate) square foot hour hour 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 Standard Unit Cost $ 0.92 $ 10.40 $ 1.60 per square foot per hour per hour Variable overhead cost Calculate Parker Plastic's variable overhead rate and efficiency variances and its over- or underapplied variable overhead.Fixed overhead cost $ 8.28 2.60 0.40 0.32 1,200,000 11,100,000 $ 9,990,000 302,000 $ 3,110,600 $ 496,000 $ 359,000
Chapter1: Financial Statements And Business Decisions
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Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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am.111.
Transcribed Image Text:Direct materials (plastic)
9
Fixed manufacturing overhead ($289,280 +
904,000 units)
actual results for the past year:
Standard
Quantity
Direct labor
0.25
Variable manufacturing overhead (based on 0.25
direct labor hours)
Standard Price Standard Unit
(Rate)
Cost
square foot
hour
hour
Number of units produced and sold
Number of square feet of plastic used
Cost of plastic purchased and used
$0.92
$ 10.40
$ 1.60
per square
foot
per hour
per hour
Number of labor hours worked
Direct labor cost
Variable overhead cost
Calculate Parker Plastic's variable overhead rate and efficiency variances and its over- or underapplied
variable overhead.Fixed overhead cost
$
8.28
2.60
0.40
0.32
1,200,000
11,100,000
$
9,990,000
302,000
$ 3,110,600
$ 496,000
$ 359,000
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