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arker Plastic, Inc., manufactures plastic mats to use with rolling office chairs. Its standard cost information for last year follows: Standard Quantity Standard Price (Rate)

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

Standard Quantity Standard Price (Rate) Standard Unit Cost
Direct materials (plastic) 10 sq ft. $ 1.13 per sq. ft. $ 11.30
Direct labor 0.3 hr. $ 11.20 per hr. 3.36
Variable manufacturing overhead (based on direct labor hours) 0.3 hr. $ 3.00 per hr. 0.90
Fixed manufacturing overhead $422,280 918,000 units) 0.46

Parker Plastic had the following actual results for the past year:

Number of units produced and sold 1,120,000
Number of square feet of plastic used 11,800,000
Cost of plastic purchased and used $ 14,160,000
Number of labor hours worked 316,000
Direct labor cost $ 3,634,000
Variable overhead cost $ 960,000
Fixed overhead cost $ 373,000

Required: Calculate Parker Plastics direct labor rate and efficiency variances. (Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable.)

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