Parker Plastic, Incorporated, 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 ($441,600 + 920,000 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 1,140,000 11,900,000 $ 15,470,000 318,000 $ 3,688,800 $ 1,030,000 $ 375,000 Variable Overhead Rate Variance Variable Overhead Efficiency Variance Variable Overhead Spending Variance Standard Quantity 11 square foot 0.3 hour 0.3 hour Standard Price (Rate) $ 1.26 per square foot $11.70 per hour $ 2.10 per hour Required: Calculate Parker Plastic's variable overhead rate and efficiency variances and its over- or underapplied variable overhead. Note: Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Standard Unit Cost $13.86 3.51 0.63 0.48

Parker Plastic, Incorporated, 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 ($441,600 + 920,000 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 1,140,000 11,900,000 $ 15,470,000 318,000 $ 3,688,800 $ 1,030,000 $ 375,000 Variable Overhead Rate Variance Variable Overhead Efficiency Variance Variable Overhead Spending Variance Standard Quantity 11 square foot 0.3 hour 0.3 hour Standard Price (Rate) $ 1.26 per square foot $11.70 per hour $ 2.10 per hour Required: Calculate Parker Plastic's variable overhead rate and efficiency variances and its over- or underapplied variable overhead. Note: Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Standard Unit Cost $13.86 3.51 0.63 0.48

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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