E9-10 (Algo) Calculating Variable Overhead Variances [LO 9-5) Parker Plastic, Inc., manufactures plastic mats to use with rolling office chairs. Its standard cost information for last year follows: Standard Standard Quantity Standard Price (Rate) Unit Cost Direct materials (plastic) 12 sq ft. $ 1.10 per sq. ft. $13.20 Direct labor 2.25 hr. $13.20 per hr 3.30 Variable manufacturing overhead 2.25 hr. $ 2.20 per hr (based on direct labor hours) Fixed manufacturing overhead 0.62 ($579,880 + 934,800 units) 0.55 Parker Plastic had the following actual results for the past year Number of units produced and sold Number of square feet of plastic used 1,280, eee 12,6ee, eee ru Next > 4 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 1,280, eee 12,6ee, eee $ 12, 600, 800 332,689 $ 4,083,600 $ 1,589, $ 389, eee Required: Calculate Parker Plastic's variable overhead rate and efficiency variances and its over- or underapplied variable over round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfave "None" for no effect (i.e., zero variance).) Answer is complete but not entirely correct. 7 Required: Calculate Parker Plastic's variable overhead rate and efficiency variances and its over- or underoppled variable overhead (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).) Answer is complete but not entirely correct. Variable Overhead Rate Variance Variable Overhead Efficiency Variance Variable Overhead Spending Variance $ 856,560 U $ 62.400 $ 885.000 U