Parker Plastic, Inc., manufactures plastic mats to use with rolling office chairs. Its standard cost information for last year follows: Direct materials. (plastic) Direct labor Variable manufacturing overhead (based on direct labor hours) Fixed manufacturing overhead $480,480 + 924,000 units) Variable Overhead Standard Quantity Rate Variance Standard Price (Rate) Variable Overhead Efficiency Variance 13 sq ft. 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 Variable Overhead Spending Variance. 0.3 hr. 0.3 hr. Standard Unit Cost Parker Plastic had the following actual results for the past year: $ $ 12.10 $ 1.20 1,180,000 per 1.55 sq. $ 20.15 ft. 12,100,000 $ 18,150,000 322,000 $ 3,799,600 $ 1,200,000 $ 379,000 per hr. per hr. 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.) 3.63 0.36 0.52
Parker Plastic, Inc., manufactures plastic mats to use with rolling office chairs. Its standard cost information for last year follows: Direct materials. (plastic) Direct labor Variable manufacturing overhead (based on direct labor hours) Fixed manufacturing overhead $480,480 + 924,000 units) Variable Overhead Standard Quantity Rate Variance Standard Price (Rate) Variable Overhead Efficiency Variance 13 sq ft. 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 Variable Overhead Spending Variance. 0.3 hr. 0.3 hr. Standard Unit Cost Parker Plastic had the following actual results for the past year: $ $ 12.10 $ 1.20 1,180,000 per 1.55 sq. $ 20.15 ft. 12,100,000 $ 18,150,000 322,000 $ 3,799,600 $ 1,200,000 $ 379,000 per hr. per hr. 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.) 3.63 0.36 0.52
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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:
Direct materials
(plastic)
Direct labor
Variable
manufacturing
overhead (based
on direct labor
hours)
Fixed
manufacturing
overhead
$480,480 +
924,000 units)
Variable
Overhead
Standard
Quantity
Rate
Variance
Standard
Price
(Rate)
Variable
Overhead
Efficiency
Variance
13 sq ft.
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
Variable
Overhead
Spending
Variance
0.3 hr.
0.3 hr.
Standard
Unit Cost
Parker Plastic had the following actual results for the past year:
$
$ 12.10
per
1.55 sq.
ft.
$ 1.20
1,180,000
12,100,000
$ 18,150,000
322,000
$ 3,799,600
$
1,200,000
$
379,000
per
hr.
per
hr.
$ 20.15
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.)
3.63
0.36
0.52
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