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E9-10 (Algo) Calculating Variable Overhead Variances [LO 9-5) 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 ($450,480 924,000 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 1,180,000 12,100,000 $ 18,150,000 322,000 $3,799,000 $ 1,200,000 $ 379,000 Variable Overhead Rate Variance Variable Overhead Efficiency Variance Variable Overhead Spending Variance Standard Quantity 13 square foot 0.3 hour 0.3 hour Standard Price (Rate) $1.55 per square foot $ 12.10 per hour $ 1.20 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 U Cost 5:20.1 3.6 0.3 0.5

E9-10 (Algo) Calculating Variable Overhead Variances [LO 9-5) 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 ($450,480 924,000 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 1,180,000 12,100,000 $ 18,150,000 322,000 $3,799,000 $ 1,200,000 $ 379,000 Variable Overhead Rate Variance Variable Overhead Efficiency Variance Variable Overhead Spending Variance Standard Quantity 13 square foot 0.3 hour 0.3 hour Standard Price (Rate) $1.55 per square foot $ 12.10 per hour $ 1.20 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 U Cost 5:20.1 3.6 0.3 0.5

Principles of Accounting Volume 2
Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter8: Standard Costs And Variances
Section: Chapter Questions
Problem 11EB: Fitzgerald Company manufactures sewing machines, and they produced 2,500 this past month. The...
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E9-10 (Algo) Calculating Variable Overhead Variances [LO 9-5) 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 ($450,480 924,000 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 1,180,000 12,100,000 $ 18,150,000 322,000 $3,799,000 $ 1,200,000 $ 379,000 Variable Overhead Rate Variance Variable Overhead Eficiency Variance Variable Overhead Spending Variance Standard Quantity 13 square foot 0.3 hour 0.3 hour Standard Price (Rate) $1.55 per square foot $ 12.10 per hour $1.20 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 U Cost 5:20.1 3.6 0.3 0.5
Transcribed Image Text:E9-10 (Algo) Calculating Variable Overhead Variances [LO 9-5) 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 ($450,480 924,000 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 1,180,000 12,100,000 $ 18,150,000 322,000 $3,799,000 $ 1,200,000 $ 379,000 Variable Overhead Rate Variance Variable Overhead Eficiency Variance Variable Overhead Spending Variance Standard Quantity 13 square foot 0.3 hour 0.3 hour Standard Price (Rate) $1.55 per square foot $ 12.10 per hour $1.20 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 U Cost 5:20.1 3.6 0.3 0.5
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