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 square foot $ per square foot $
Direct labor hour $ per hour
Variable manufacturing overhead based on direct labor hours hour $ per hour
Fixed manufacturing overhead $: 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 $
Number of labor hours worked
Direct labor cost $
Variable overhead cost $
Fixed overhead cost $
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 ie zero variance
