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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)
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 | $ 1.55 | per square foot | $ 20.15 |
Direct labor | 0.3 | hour | $ 12.10 | per hour | 3.63 |
Variable manufacturing overhead (based on direct labor hours) | 0.3 | hour | $ 1.20 | per hour | 0.36 |
Fixed manufacturing overhead ($480,480 924,000 units) | 0.52 |
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 Plastics 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).
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