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

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

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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