E9-10 (Algo) 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 Quantity | Standard Price (Rate) | Standard Unit Cost | ||||||
Direct materials (plastic) | 15 | sq ft. | $ | 0.90 | per sq. ft. | $ | 13.50 | |
Direct labor | 0.25 | hr. | $ | 12.60 | per hr. | 3.15 | ||
Variable manufacturing overhead (based on direct labor hours) | 0.25 | hr. | $ | 1.80 | per hr. | 0.45 | ||
Fixed manufacturing overhead ($539,400 ÷ 930,000 units) | 0.58 | |||||||
Parker Plastic had the following actual results for the past
year:
Number of units produced and sold | 1,240,000 | |
Number of square feet of plastic used | 12,400,000 | |
Cost of plastic purchased and used | $ | 9,920,000 |
Number of labor hours worked | 328,000 | |
Direct labor cost | $ | 3,968,800 |
Variable overhead cost | $ | 1,350,000 |
Fixed overhead cost | $ | 385,000 |
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 favorable, "U" for
unfavorable, and "None" for no effect (i.e., zero
variance).)
|
Voh Rate variance = (SR-AR) *AH
= (1.80 - 1,350,000/328,000)*328,000
= 759,600 U
Voh efficiency variance = (SH-AH) *SR
= (1,240,000*0.25 - 328,000)*1.80
= 32,400 U
Voh spending variance = 759,600U + 32,400U
= 792,000U
E9-10 (Algo) Calculating Variable Overhead Variances [LO 9-5] Parker Plastic, Inc., manufactures plastic mats to use...
E9-10 (Algo) 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 Standard Pride Quantity (RA ) 15 sq ft. S 0.90 per . Et 0.25 h $12.60 per hr. 1.80 per he. Standard Unit Cost $13.50 Direct materials (plastic) Direct labor Variable manufacturing overhead (based on direct labor hours) Pixed manufacturing overhead (5539, 400 - 930,000 units) Parker Plastic had the following...
Parker Plastic, Inc., manufactures plastic mats to use with rolling office chairs. Its standard cost information for last year follows: Standard Standard Standard Price (Rate) $ 0.90 per sq. ft $12.60 per hr. Quantity 15 sq ft 0.25 hr Unit Cost Direct materials (plastic) $13.50 3.15 Direct labor Variable manufacturing overhead (based on direct labor hours) Fixed manufacturing overhead $539,400 930,000 units) 0.25 hr $ 1.80 per hr 0.45 0.58 Parker Plastic had the following actual results for the past...
E9-7 Calculating Direct Labor Variances [LO 9-4] Parker Plastic, Inc., manufactures plastic mats to use with rolling office chairs. Its standard cost information for last year follows: Direct materials (plastic) Direct labor Variable manufacturing overhead (based on direct labor hours) Fixed manufacturing overhead $270,600 + 902,000 units) Standard Quantity 10 sq ft. 0.25 hr. 0.25 hr. Standard Price (Rate) $ 0.82 per sq. ft. $ 10.20 per hr. $ 1.40 per hr. Standard Unit Cost $ 8.20 2.55 0.35 0.30...
E9-9 (Algo) Calculating Direct Labor Variances (LO 9-4) Parker Plastic, Inc., manufactures plastic mats to use with rolling office chairs. Its standard cost information for last year follows: points Skipoed Standard Quantity 12 sq ft. 0.3 hr. 0.3 hr. Direct materiale (plastic) Direct labor Variable manufacturing overhead based on direct labor hours) Fixed manufacturing overhead (5661.000 - 922,000 units) Standard Price Rate) $1.45 per sq. ft. $11.90 per hr. $ 2.30 per hr. Standard Unit Cont $17.40 0.50 Parker Plastic...
33 E9-8 (Algo) Calculating Direct Materials Variances [LO 9-3) Parker Plastic, Inc., manufactures plastic mats to use with rolling office chairs. Its standard cost information for last year follows: 10 points Standard Unit Cost $9.96 2.62 Standard Standard Price Quantity 12 sq ft. 0.25 hr (Rate) 0.83 per sq. ft. $10.50 per hr. Direct materials (plastic) Direct labor variable manufacturing overhead (based on direct labor hours) Fixed manufacturing overhead $345,800 910,000 units) Skipped $2.20 per hr. 0.55 0.25 hr. 0.38...
E9-8 (Algo) Calculating Direct Materials Variances [LO 9-3] Parker Plastic, Inc., manufactures plastic mats to use with rolling office chairs. Its standard cost information for last year follows: Direct materials (plastic) Direct labor Variable manufacturing overhead (based on direct labor hours) Fixed manufacturing overhead $599,040 + 936,000 units) Standard Standard Price Quantity (Rate) 8 sq ft. $ 1.20 per sq. ft. 0.3 hr. $13.30 per hr. 0.3 hr. $ 2.40 per hr. Standard Unit Cost $ 9.60 3.99 0.72 0.64...
Parker Plastic, Inc., 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) 10 sq ft. $ 0.82 per sq. ft. $ 8.20 Direct labor 0.25 hr. $ 10.20 per hr. 2.55 Variable manufacturing overhead (based on direct labor hours) 0.25 hr. $ 1.40 per hr. 0.35 Fixed manufacturing overhead $270,600 ÷ 902,000 units) 0.30 Parker Plastic had the following actual results...
Parker Plastic, Inc., 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) 12 sq ft. $ 1.00 per sq. ft. $ 12.00 Direct labor 0.25 hr. $ 12.80 per hr. 3.20 Variable manufacturing overhead (based on direct labor hours) 0.25 hr. $ 2.00 per hr. 0.50 Fixed manufacturing overhead $559,200 ÷ 932,000 units) 0.60 Parker Plastic had the following actual results...
Parker Plastic, Inc., manufactures plastic mats to use with rolling office chairs. Its standard cost information for last year follows: Standard Quantity Standard Price Standard Unit Cost Direct materials (Plastic) 10 Sq Ft 0.82 per square feet 8.20 Direct Labor 0.25 hr 10.20 per hours 2.55 VMOH 0.25 hr 1.40 per hour 0.35 Fixed MOH 0.30 Number of Units Produced and Sold 1,020,000 Number of square feet of Plastic used 11,000,000 Cost of Plastic Purchased and used 8,800,000 Number of...
Parker Plastic, Inc., 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) 12 sq ft. $ 0.83 per sq. ft. $ 9.96 Direct labor 0.25 hr. $ 10.50 per hr. 2.62 Variable manufacturing overhead (based on direct labor hours) 0.25 hr. $ 2.20 per hr. 0.55 Fixed manufacturing overhead $345,800 ÷ 910,000 units) 0.38 Parker Plastic had the following actual results...