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 $ 0.70 per square foot $ 9.10 Direct labor 0.25 hour $ 12.20 per hour 3.05 Variable manufacturing overhead (based on direct labor hours) 0.25 hour $ 1.40 per hour 0.35 Fixed manufacturing overhead ($500,040 926,000 units) 0.54 Parker Plastic had the following actual results for the past year: Number of units produced and sold 1,200,000 Number of square feet of plastic used 12,200,000 Cost of plastic purchased and used $ 7,320,000 Number of labor hours worked 324,000 Direct labor cost $ 3,855,600 Variable overhead cost $ 1,300,000 Fixed overhead cost $ 381,000

Parker Plastic, Incorporated, manufactures plastic mats to use with rolling office chairs. Its standard cost information for last year follows: Parker Plastic had the following actual results for the past year: 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)