Parker 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) 12 sq ft $ 0 71 per sq ft $ 8 52 Direct labor 0 6 hr $ 10 50 per hr 6 30 Variable manufacturing overhead (based on direct labor hours) 0 6 hr $ 1 00 per hr 0 60 Fixed manufacturing overhead ($700,000 1,000,000 units) 0 70 Parker Plastic had the following actual results for the past year Number of units produced and sold 1,100,000 Number of square feet of plastic used 12,650,000 Cost of plastic purchased and used $ 8,728,500 Number of labor hours worked 655,000 Direct labor cost $ 6,615,500 Variable overhead cost $ 720,500 Fixed overhead cost $ 688,000 Required Calculate Parker Plastics fixed overhead spending and volume variances and its over or underapplied fixed overhead (Indicate the effect of each variance by selecting F for favorable, U for unfavorable, and None for no effect (i e , zero variance) )

Question

Parker 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) 12 sq ft  $ 0 71 per sq  ft  $ 8 52 Direct labor 0 6 hr  $ 10 50 per hr  6 30 Variable manufacturing overhead (based on direct labor hours) 0 6 hr  $ 1 00 per hr  0 60 Fixed manufacturing overhead ($700,000 1,000,000 units) 0 70 Parker Plastic had the following actual results for the past year  Number of units produced and sold 1,100,000 Number of square feet of plastic used 12,650,000 Cost of plastic purchased and used $ 8,728,500 Number of labor hours worked 655,000 Direct labor cost $ 6,615,500 Variable overhead cost $ 720,500 Fixed overhead cost $ 688,000 Required  Calculate Parker Plastics fixed overhead spending and volume variances and its over  or underapplied fixed overhead  (Indicate the effect of each variance by selecting  F  for favorable,  U  for unfavorable, and  None  for no effect (i e , zero variance) )

Accepted Answer

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	Standard Quantity		Standard Price (Rate)			Standard Unit Cost
Direct materials (plastic)	12	sq ft.	$	0.71	per sq. ft.	$	8.52
Direct labor	0.6	hr.	$	10.50	per hr.		6.30
Variable manufacturing overhead (based on direct labor hours)	0.6	hr.	$	1.00	per hr.		0.60
Fixed manufacturing overhead ($700,000 1,000,000 units)							0.70

Question

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

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Number of units produced and sold		1,100,000
Number of square feet of plastic used		12,650,000
Cost of plastic purchased and used	$	8,728,500
Number of labor hours worked		655,000
Direct labor cost	$	6,615,500
Variable overhead cost	$	720,500
Fixed overhead cost	$	688,000