Ret 7 Standard Standard Price Quantity (Rate) 12 sq ft. $ 0.63 per sq. ft. 0.2 hr. $ 10.10 per hr. 0.2 hr. $ 0.60 per hr. Standard Unit Cost $ 7.56 2.02 Direct materials (plastic) Direct labor Variable manufacturing overhead (based on direct labor hours) Fixed manufacturing overhead ($252,000 = 840,000 units) 0.12 1.87 points 0.30 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 940,000 10,810,000 $ 6,594,100 183,000 $ 1,775, 100 $ 128,100 $ 232,000 Required: Calculate Parker Plastic's 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).) Answer is complete but not entirely correct. IS Fixed Overhead Spending Variance Fixed Overhead Volume Variance Over-or Underapplied Fixed Overhead $ 20 X F 232 X U 50 F X $ 00 See Clear Company manufactures clear plastic CD cases. It applies variable overhead based on the number of machine hours used. Information regarding See Clear's overhead for the month of December follows: 1.91 points Standard Unit Cost Variable manufacturing overhead Standard Quantity 0.2 machine hours per case Standard Rate $0.70 per machine hour $ 0.14 During December, See Clear had the following actual results: Number of units produced and sold Actual variable overhead cost Actual machine hours 315,000 $ 45,000 60,000 Required: Compute See Clear's variable overhead rate variance, variable overhead efficiency variance, and over- or underapplied 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 $ 3,000U 2,100F 3,000 X None x
