D Chapter 9 Horme work × Home l Chegg.com XL D ezto.mheducation.com/hm.tpx 4.00

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D Chapter 9 Horme work × Home l Chegg.com XL D ezto.mheducation.com/hm.tpx 4.00 point:s E9-8 Calculating Variable Overhead Variances [LO 9-5] Parker Plastic, Inc., s plastic mats to use with rolling office chairs. Its standard cost inforrmation for last year follows: Standard Quantity Stadard Price (Rate) Unit Cast 14 sft S 0.80 per sq. ft. Standard Direct materials iplastic Direct labor Variable manufacturing overhead based on $11.20 $ 12.40 per hr S 1.80 per hr 3.10 0.40 0,56 0.25 hr 0.25 hr direet labor hours) Fixed manufacturing overhead $519,680 928,000 units) Parker Plastic had the following actual results for the past year: Number Number of square teet of plastic used Cost of plastc purchased and used Number of labor hours worked Direct labor cos 1,220,000 12,300,000 $8,610,000 326,000 $ 3,912,000 $ 1,240,000 $383,000 of units produced and sold ariable overhead cost Fixed overhead cost Required: Calculate Parker Plastic's variable overhead rate and efficiency variances and its over- or underapplied variable overhead. (Do not round Intermedlate calculations. Indicate the ettect of each varlance by selecting "F" for Favorable/Overapplied and "U" for Unfavorable/Underapplied.) Variable Overhead Rate Variance Variable Overhead Ericiency Variance ariable Overhead Spending Variance

Explanation / Answer

Variable overhead rate variance = (1.6*326000-1240000) = 718400 U

variable overhead efficiency variance = (1220000*.25-326000)*1.6 = 33600 U

Variable overhead spending variance = (1220000*.40-1240000) = 752000 U

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