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Parker Plastic, Incorporated, manufactures plastic mats to use with rolling office chairs. Its standard cost information for last year follows: Direct materials (plastic) Direct labor Variable manufacturing overhead (based on direct labor hours) Fixed manufacturing overhead ($539,400 910,000 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 fumber of labor hours worked Direct labor cost Variable overhead cost Fixed overhead cost 1,240,000 12,400,000 $9,920,000 Vanabile Overhead Rate Variance Variable Overhead Efficiency Variance Vanable Overhead Spending Variance 328,000 $3,960,000 $1,350,000 $385,000 Standard Quantity 15 square foot 0.25 hour 0.25 hour Standard Price (Rate) $0.90 per square foot $12.60 per hour $ 1.80 per hour 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). Standard Unit Cost $13.50 3.15 0.45 0.58

Parker Plastic, Incorporated, manufactures plastic mats to use with rolling office chairs. Its standard cost information for last year follows: Direct materials (plastic) Direct labor Variable manufacturing overhead (based on direct labor hours) Fixed manufacturing overhead ($539,400 910,000 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 fumber of labor hours worked Direct labor cost Variable overhead cost Fixed overhead cost 1,240,000 12,400,000 $9,920,000 Vanabile Overhead Rate Variance Variable Overhead Efficiency Variance Vanable Overhead Spending Variance 328,000 $3,960,000 $1,350,000 $385,000 Standard Quantity 15 square foot 0.25 hour 0.25 hour Standard Price (Rate) $0.90 per square foot $12.60 per hour $ 1.80 per hour 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). Standard Unit Cost $13.50 3.15 0.45 0.58

Cornerstones of Cost Management (Cornerstones Series)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter9: Standard Costing: A Functional-based Control Approach
Section: Chapter Questions
Problem 32P: Petrillo Company produces engine parts for large motors. The company uses a standard cost system for...
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Parker Plastic, Incorporated, manufactures plastic mats to use with rolling office chairs. Its standard cost information for last year follows: Direct materials (plastic) Direct labor Variable manufacturing overhead (based on direct labor hours). Fixed manufacturing overhead ($539,400 930,000 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 fumber of labor hours worked Direct labor cost Variable overhead cost Fixed overhead cost 1,240,000 12,400,000 $9,920,000 328,000 $3,968,000 $1,350,000 $385,000 Vanabile Overhead Rate Variance Variable Overhead Efficiency Variance Variable Overhead Spending Variance Standard Quantity 15 square foot 0.25 hour 0.25 hour Standard Price (Rate) $0.50 per square foot $12.60 per hour $1.80 per hour 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 (ie., zero variance). Standard Unit Cost $13.50 3.15 0.45 0.58
Transcribed Image Text:Parker Plastic, Incorporated, manufactures plastic mats to use with rolling office chairs. Its standard cost information for last year follows: Direct materials (plastic) Direct labor Variable manufacturing overhead (based on direct labor hours). Fixed manufacturing overhead ($539,400 930,000 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 fumber of labor hours worked Direct labor cost Variable overhead cost Fixed overhead cost 1,240,000 12,400,000 $9,920,000 328,000 $3,968,000 $1,350,000 $385,000 Vanabile Overhead Rate Variance Variable Overhead Efficiency Variance Variable Overhead Spending Variance Standard Quantity 15 square foot 0.25 hour 0.25 hour Standard Price (Rate) $0.50 per square foot $12.60 per hour $1.80 per hour 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 (ie., zero variance). Standard Unit Cost $13.50 3.15 0.45 0.58
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