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Edit View History Bookmarks People Window Help Microsoft Office Hor xHw7_Chapter 9 W Student Home-Cox W Week at a Glance xe ? ezto.mheducation.com/hm.tpx Apple N Netfix &Google; W https://webauth.... D CHEMICAL D State Farm FCU M Business s E9-8 Calculating Variable Overhead Variances [LO 9-5 Parker Plastic, Inc., manufactures plastic mats to use with rolling office chairs. Its standard cost information for last year follows: Standard Unit Cost Standard QuantityStandard Price (Rate) 13 sq ft$ 0.93 per sq. ft 0.3 hr $12.09 Direct materials (plastic) Direct labor Variable manufacturing overhead (based on0.3h $ 10.90 per hr 2.40 por he. 3.27 0.72 0.40 direct labor hours) Fixed manufacturing overhead $364,800 912,000 units) Parker Plastic had the following actual results for the past year Number of units produced and sold Number of square foet of plastic used Cost of plastic purchased and used Number of labor hours worked Direct labor cost Variable overhead cost Fxed overhead cost 1,060,000 11,500,000 $ 10,350,000 310,000 $ 3,565,000 S 780,000 S 367,000 Required Calculate Parker Plastes vanable overhead rate and eticiency variances and its over-or underappied variable overhead. Do not round intermediate calculations. Indicate the effect of each variance by selecting "F for Favorable/Overapplied and "U" for Unfavorable/Underapplied.) ? Variable Overhead Rate Variance Variable Overhead EMiciency Variance Variable Overhead Spending Variance MacBook Air

Explanation / Answer

Variable overhead rate variance = (2.4*310000-780000) = 36000 U

Variable overhead efficiency variance = (1060000*.3-310000)*2.4 = 19200 F

Variable overhead spending variance = (1060000*0.72-780000) = 16800 U

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