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Parker Plastic, Incorporated, manufactures plastic mats to use with rolling office chairs. Its standard cost information for last year Mollows: Direct materials (plastic) Direct labor Variable manufacturing overhead (based on direct labor hours) Fixed manufacturing overhead (5901,000 1,060,000 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 1,160,000 13.340,000 $9,738,200 865.000 $8,866,250 $1,001,250 $892,000 Standard Quantity 12 square foot 0.75 hour 0.75 hour Standard Price (Bate) $ 0.75 per square foot $10.45 per hour $ 1.15 per hour Required: Calculate Parker Plastic's fixed overhead spending and volume variances and its over- or underapplied fixed overhead. Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "Nane" for no effect Standard Unit Coat $9.00 7.99 0.06 0.85

Parker Plastic, Incorporated, manufactures plastic mats to use with rolling office chairs. Its standard cost information for last year Mollows: Direct materials (plastic) Direct labor Variable manufacturing overhead (based on direct labor hours) Fixed manufacturing overhead (5901,000 1,060,000 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 1,160,000 13.340,000 $9,738,200 865.000 $8,866,250 $1,001,250 $892,000 Standard Quantity 12 square foot 0.75 hour 0.75 hour Standard Price (Bate) $ 0.75 per square foot $10.45 per hour $ 1.15 per hour Required: Calculate Parker Plastic's fixed overhead spending and volume variances and its over- or underapplied fixed overhead. Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "Nane" for no effect Standard Unit Coat $9.00 7.99 0.06 0.85

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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) Yixed manufacturing overhead ($901,000 1,060,000 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 i Cost of plastic purchased and used Number of labor hours worked Direct labor cost Variable overhead cost Fixed overhead cost 1,160,000 13,340,000 $9,738,200 Fixad Overhead Spending Variance Fixed Overhead Volume Varianco Over-or Underapplied Fixed Overhead 865.000 $8,866,250 $1,001,250 $ 892,000 Standard Quantity 12 equare foot 0.75 hour 0.75 hour Standard Price (Rate) $ 0.75 per square foot $10.65 per hour $ 1.15 per hour Required: Calculate Parker Plastic's fixed overhead spending and volume variances and its over-or underapplied fixed overhead. Note: 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 Coat $9.00 7.99 0.86 0.85
Transcribed Image Text: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) Yixed manufacturing overhead ($901,000 1,060,000 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 i Cost of plastic purchased and used Number of labor hours worked Direct labor cost Variable overhead cost Fixed overhead cost 1,160,000 13,340,000 $9,738,200 Fixad Overhead Spending Variance Fixed Overhead Volume Varianco Over-or Underapplied Fixed Overhead 865.000 $8,866,250 $1,001,250 $ 892,000 Standard Quantity 12 equare foot 0.75 hour 0.75 hour Standard Price (Rate) $ 0.75 per square foot $10.65 per hour $ 1.15 per hour Required: Calculate Parker Plastic's fixed overhead spending and volume variances and its over-or underapplied fixed overhead. Note: 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 Coat $9.00 7.99 0.86 0.85
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