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Parker Plastic, Incorporated, manufactures plastic mats to use with rolling office follows: Direct materials (plastic) Direct labor Variable manufacturing overhead (based on direct labor hours) Fixed manufacturing overhead ($289,208 904,000 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 Exed overhead cost. 1,200,000 11,100,000 $ 9,990,000 $ 302,000 3,110,600 $ 495,000 $ 359,000 IS Standard Quantity 9 square foot 0.25 hour 0.25 hour Standard Price (Rate) $ 0.92 per square foot $10.40 per hour $ 1.60 per hour Standard Cos 58 2 0

Parker Plastic, Incorporated, manufactures plastic mats to use with rolling office follows: Direct materials (plastic) Direct labor Variable manufacturing overhead (based on direct labor hours) Fixed manufacturing overhead ($289,208 904,000 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 Exed overhead cost. 1,200,000 11,100,000 $ 9,990,000 $ 302,000 3,110,600 $ 495,000 $ 359,000 IS Standard Quantity 9 square foot 0.25 hour 0.25 hour Standard Price (Rate) $ 0.92 per square foot $10.40 per hour $ 1.60 per hour Standard Cos 58 2 0

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) Fixed manufacturing overhead ($289,288 004,000 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 1,200,000 11,100,000 $ 9,990,000 Vanable Overhead Rate Variance Variable Overhead Efficiency Variance Variable Overhead Spending Variance 302,000 $ 3,110,600 $496,000 $ 359,000 Standard Quantity 9 square foot 0.25 hour 0.25 hour Standard Price (Rate) $0.92 per square foot $10.40 per hour $ 1.60 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 Cos 58 2 0 0
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) Fixed manufacturing overhead ($289,288 004,000 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 1,200,000 11,100,000 $ 9,990,000 Vanable Overhead Rate Variance Variable Overhead Efficiency Variance Variable Overhead Spending Variance 302,000 $ 3,110,600 $496,000 $ 359,000 Standard Quantity 9 square foot 0.25 hour 0.25 hour Standard Price (Rate) $0.92 per square foot $10.40 per hour $ 1.60 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 Cos 58 2 0 0
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