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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

FINANCIAL ACCOUNTING
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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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
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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