E9-7 Calculating Direct Labor Variances [LO 9-4] 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) 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 0.3 hr. $ 3.00 per hr. 0.90 direct labor hours) Fixed manufacturing overhead $422,280 0.46 918,000 units) 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 1,120,000 11,800,000 $ 14,160,000 316,000 $ 3,634,000 $ 960,000 $ 373,000 Required: Calculate Parker Plastic's 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.) Direct Labor Rate Variance Direct Labor Efficiency Variance