12 sq ft S 145 per sq ft 03 hr 1740 S 1190 per ht 230 per hr

12 sq ft. S 1.45 per sq ft 03 hr $17.40 S 11.90 per ht. 2.30 per hr Direct labor 3.57 0.69 0.50 (based on03 h direct labor hours 922000 units) of units produced and sold 1,160,000 12,000,000 S 16,800,000 320,000 $ 3,744.000 $ 1,100,000 S 377,000 cost cost Re Calculate Parker Plastic\'s variable overhead rate and efficiency variances and its over- or underapplied variable overhead (Do not round ettect of each variance by selecting \"F\" tor Favorable/Overapplied and \"U\" for Unfavorable/Underapplied.) Overhead

Solution

Solution:

Standard direct labor hours for actual production = 1160000*0.3 = 348000 hours

Actual direct labor hours used = 320000 hours

Standard rate of variable overhead = $2.30 per hour

Actual rate of variable overhead = $1,100,000 / 320000 = $3.4375 per hour

Variable overhead rate variance = (SR - AR) * AH = ($2.30 - $3.4375)* 320000 = $364,000 U

Variable overhead efficiency variance = (SH - AH) * SR = (348000 - 320000) * $2.30 = $64,400 F

Underapplied overhead (Variable overhead spending variance) = $364,000 U + 64,400 F = $299,600 U