E$9-10($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:

Standard Quantity Standard Price $($Rate$)$ Standard Unit Cost

Direct materials $($plastic$)13$ square foot $ $1\mathrm{.}55$ per square foot $ $20\mathrm{.}15$

Direct labor $0\mathrm{.}3$ hour $ $12\mathrm{.}10$ per hour $3\mathrm{.}63$

Variable manufacturing overhead $($based on direct labor hours$)0\mathrm{.}3$ hour $ $1\mathrm{.}20$ per hour $0\mathrm{.}36$

Fixed manufacturing overhead $($$$480,480-$: $924,000$ units$)0\mathrm{.}52$

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

Number of units produced and sold $1,180,000$

Number of square feet of plastic used $12,100,000$

Cost of plastic purchased and used $ $18,150,000$

Number of labor hours worked $322,000$

Direct labor cost $ $3,799,600$

Variable overhead cost $ $1,200,000$

Fixed overhead cost $ $379,000$

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$).$