Refer to the information presented in E10-8 for Easy Roller.

Required:

Calculate Easy Roller’s variable overhead rate and efficiency variances and its over- or underapplied variable overhead.

Data from E10-8

Easy Roller, Inc., manufactures plastic mats to use with rolling office chairs. Its standard cost information for last year follows:

Easy Roller had the following actual results for the past year.

Direct costs Plastic Direct labor Variable manufacturing overhead Fixed manufacturing overhead ($360,000/900,000 units) Standard Quantity Standard Price (Rate) Standard Unit Cost 12 sq ft. $ 0.75 per sq. ft. $9.00 .25 hr. 12.00 per hr. 3.00 1.20 per direct labor hour 0.30 0.40