i safari File Edit View History Bookmarks Window Help 75

i safari File Edit View History Bookmarks Window Help ? ? ? 75%) L. E ) Sat Jun 30 4:42 PM Alex C ezto.mneducation.com Home - alamo.edu Chapter 9 Exercises 11.11 points Parker Plastic, Inc., manufactures plastic mats to use with rolling office chairs. Its standard cost information for last year follows: Standard QuantityStandard Price (Rate) Standard Unit Cost Direct materials (plastic) Direct labor 8 sqft. 1.02 per sq. ft 0.3 hr S 8.16 $11.10 per hr $ 2.60 per hr 3.33 0.78 0.42 Variable manufacturing overhead (based on 0.3 hr. direct labor hours) Fixed manufacturing overhead $383,880 914,000 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 Number of labor hours worked Direct labor cost Variable overhead cost Fixed overhead cost 1,080,000 11,600,000 S 11,600,000 312,000 S 3,681,600 S 800,000 S 369,000 Required Calculate Parker Plastic\'s variable overhead rate and efficiency variances and its over-or underapplied variable overhead. (Do not round intermediate calculations. Indicate the effect of each variance by selecting \"F for FavorableOverapplied and \"U\" for Unfavorable/Underapplied.) Variable Overhead Rate Variance Variable Overhead Efficiency Variance Variable Overhead Spending Variance afari.dmg 0

Solution

Actual output: 1080000 units Std hours allowed for actual output (1080000*0.30) = 324000 hours Std Variable OH rate per hour: 2.60 per hour Actual Hours taken: 312000 hours Actual Variable OH rate per hour (800,000/312000) = 2.564 per hour Variable OH rate variance: Actual time takenn (Std rate -Actual rate) 312000 (2.60 - 2.564) = 11200 Fav Variable OH efficiency variance: Std rate per hour (Std hours-Actual hours) 2.60 (324000 -312000) = 31200 Fav Variable OH spending Variance: Std hours*Std OH rate - Actual Variable OH Incurred 324000 *2.60 - 800,000 = $ 42400 Fav