Parker Plastic, Inc., manufactures plastic mats to use with rolling office chairs. Its standard cost information for last year follow Standard Quantity 12 sq ft. 0.3 hr. Standard Price (Rate) $ 0.65 per sq. ft. $10.20 per hr. 0.3 hr. $ 0.70 per hr. Direct materials (plastic) Direct labor Variable manufacturing overhead (based on direct labor hours) Fixed manufacturing overhead ($352,000 880,000 units) 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 Direct labor cost Variable overhead cost Fixed overhead cost 980,000 11,270,000 $ 7,100,100 289,000 $ 2,832,200 231,200 334,000 $ $ Fixed Overhead Spending Variance Fived Overhead Volume Variance Standard Unit Cost $ 7.80 3.06 0.21 0.40 Required: Calculate Parker Plastic's fixed overhead spending and volume variances and its over- or underapplied fixed overhead. (Indicat effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).)
Parker Plastic, Inc., manufactures plastic mats to use with rolling office chairs. Its standard cost information for last year follow Standard Quantity 12 sq ft. 0.3 hr. Standard Price (Rate) $ 0.65 per sq. ft. $10.20 per hr. 0.3 hr. $ 0.70 per hr. Direct materials (plastic) Direct labor Variable manufacturing overhead (based on direct labor hours) Fixed manufacturing overhead ($352,000 880,000 units) 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 Direct labor cost Variable overhead cost Fixed overhead cost 980,000 11,270,000 $ 7,100,100 289,000 $ 2,832,200 231,200 334,000 $ $ Fixed Overhead Spending Variance Fived Overhead Volume Variance Standard Unit Cost $ 7.80 3.06 0.21 0.40 Required: Calculate Parker Plastic's fixed overhead spending and volume variances and its over- or underapplied fixed overhead. (Indicat effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).)
Chapter5: Process Costing
Section: Chapter Questions
Problem 2PB: The following product costs are available for Kellee Company on the production of eyeglass frames:...
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![Parker Plastic, Inc., manufactures plastic mats to use with rolling office chairs. Its standard cost information for last year follows:
Standard
Quantity
12 sq ft.
0.3 hr.
Standard Price
(Rate)
$ 0.65 per sq. ft.
$10.20 per hr.
0.3 hr.
$ 0.70 per hr.
Direct materials (plastic)
Direct labor
Variable manufacturing overhead
(based on direct labor hours)
Fixed manufacturing overhead
($352,000 880,000 units)
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
Direct labor cost
Variable overhead cost
Fixed overhead cost
980,000
11,270,000
$ 7,100,100
289,000
Fixed Overhead Spending Variance
Fixed Overhead Volume Variance
Over- or Underapplied Fixed Overhead
$ 2,832,200
$
$
231,200
334,000
Standard
Unit Cost
$7.80
3.06
0.21
0.40
Required:
Calculate Parker Plastic's fixed overhead spending and volume variances and its over- or underapplied fixed overhead. (Indicate the
effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9a35fd40-cc0e-4bbb-94bf-b4404033e39d%2Fea2c3116-4e83-4534-8f32-b6d2c92df0fe%2Fh9y6kui_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Parker Plastic, Inc., manufactures plastic mats to use with rolling office chairs. Its standard cost information for last year follows:
Standard
Quantity
12 sq ft.
0.3 hr.
Standard Price
(Rate)
$ 0.65 per sq. ft.
$10.20 per hr.
0.3 hr.
$ 0.70 per hr.
Direct materials (plastic)
Direct labor
Variable manufacturing overhead
(based on direct labor hours)
Fixed manufacturing overhead
($352,000 880,000 units)
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
Direct labor cost
Variable overhead cost
Fixed overhead cost
980,000
11,270,000
$ 7,100,100
289,000
Fixed Overhead Spending Variance
Fixed Overhead Volume Variance
Over- or Underapplied Fixed Overhead
$ 2,832,200
$
$
231,200
334,000
Standard
Unit Cost
$7.80
3.06
0.21
0.40
Required:
Calculate Parker Plastic's fixed overhead spending and volume variances and its over- or underapplied fixed overhead. (Indicate the
effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).)
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