Parker Plastic, Incorporated, manufactures plastic mats to use with rolling office chairs. Its standard cost information for last year ollows: Direct materials (plastic). Direct labor Variable manufacturing overhead (based on direct labor hours) Fixed manufacturing overhead ($480,480 + 924,000 units) arker 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 Variable Overhead Rate Variance Variable Overhead Efficiency Variance Variable Overhead Spending Variance 322,000 $ 3,799,600 $ 1,200,000 $ 379,000 x Answer is not complete. S Required: Calculate Parker Plastic's variable overhead rate and efficiency variances and its over- or underapplied variable overhead. lote: Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, "U" for nfavorable, and "None" for no effect (i.e., zero variance). UFU › › › Standard Quantity 13 square foot 0.3 hour 0.3 hour 38,400 F Standard Price (Rate) $ 1.55 per square foot $ 12.10 per hour $ 1.20 per hour Standard Unit Cost $ 20.15 3.63 0.36 0.52
Parker Plastic, Incorporated, manufactures plastic mats to use with rolling office chairs. Its standard cost information for last year ollows: Direct materials (plastic). Direct labor Variable manufacturing overhead (based on direct labor hours) Fixed manufacturing overhead ($480,480 + 924,000 units) arker 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 Variable Overhead Rate Variance Variable Overhead Efficiency Variance Variable Overhead Spending Variance 322,000 $ 3,799,600 $ 1,200,000 $ 379,000 x Answer is not complete. S Required: Calculate Parker Plastic's variable overhead rate and efficiency variances and its over- or underapplied variable overhead. lote: Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, "U" for nfavorable, and "None" for no effect (i.e., zero variance). UFU › › › Standard Quantity 13 square foot 0.3 hour 0.3 hour 38,400 F Standard Price (Rate) $ 1.55 per square foot $ 12.10 per hour $ 1.20 per hour Standard Unit Cost $ 20.15 3.63 0.36 0.52
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Parker Plastic, Incorporated, manufactures plastic mats to use with rolling office chairs. Its standard cost information
follows:
Direct materials (plastic)
Direct labor
Variable manufacturing overhead (based on direct labor hours)
Fixed manufacturing overhead ($480,480 924,000 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
$3,799,600
$ 1,200,000
$ 379,000
Answer is not complete.
Variable Overhead Rate Variance
Variable Overhead Efficiency Variance
Variable Overhead Spending Variance
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).
U
$ 38,400 F
U
› › ›
Standard Quantity
13 square foot
0.3 hour
0.3 hour
✓
last year
Standard Price (Rate)
$ 1.55 per square foot
$ 12.10 per hour
$ 1.20 per hour
Standard Unit
Cost
$ 20.15
3.63
0.36
0.52
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