Refer to the information presented in E9-6 for Parker Plastic.

Parker Plastic had the following actual results for the past year:
Number of units produced and sold ..... 1,000,000
Number of square feet of plastic used .... 11,800,000
Cost of plastic purchased and used ...... $ 8,260,000
Number of labor hours worked ...... 245,000
Direct labor cost ............. $ 2,891,000
Variable overhead cost ......... $ 318,500
Fixed overhead cost ........... $ 355,000

Required:
Calculate Parker Plastic€™s variable overhead rate and efficiency variances and its over- or under-applied variableoverhead.

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Standard Quantity Standard Price Standard Unit Cost Direct materials (plastic) Direct labor Variable manufacturing overhead 12 sq ft. 0.25 hr 0.25 hr (Rate) 0.72 per sq. ft. 1.20 per hr $8.64 3.05 0.30 $12.20 per hr (based on direct labor hours) Fixed manufacturing overhead 0.42 ($378,000900,000 units)