Parker Plastic, Incorporated, manufactures plastic mats to use with rolling office chairs. Its standard cost information for last yearfollows.Direct materials (plastic)Direct laborVariable manufacturing overhead (based on direct labor hours)Fixed manufacturing overhead ($517,000 940,000 units)Parker Plastic had the following actual results for the past year.Number of units produced and soldiNumber of square feet of plastic usedCost of plastic purchased and usedNumber of labor hours workedDirect labor costVariable overhead costFixed overhead costRequired:1,040,00011,960,000$ 7,893,600463,000$ 4,606,850$ 439,850$ 502,000Standard Quantity12 square foot0.45 hourStandard Price (Rate)$ 0.68 per square foot$ 10.35 per hour0.45 hour$ 0.85 per hourCalculate Parker Plastic's fixed overhead spending and volume variances and its over- or underapplied fixed overhead.Note: Indicate the effect of each variance by selecting "F" for favorable. "U" for unfavorable, and "None" for no effect (i.e., zerovariance).Fixed Overhead Spending VarianceFixed Overhead Volume VarianceOver or Underapplied Fixed OverheadStandard Unit Cost$ 8.164.660.380.55

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Description: Parker Plastic, Incorporated, manufactures plastic mats to use with rolling office chairs. Its standard cost information for last yearfollows.Direct materials (plastic)Direct laborVariable manufacturing overhead (based on direct labor hours)Fixed ma

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Parker Plastic, Incorporated, 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 ($517,000 940,000 units) Parker Plastic had the following actual results for the past year. Number of units produced and sold 1,840,000 Standard Quantity 12 square foot 0.45 hour Standard Price (Rate) $ 0.68 per square foot $ 10.35 per hour $ 8.85 per hour 0.45 hour Standard Unit Cost $ 8.16 4.66 0.38 0.55

Parker Plastic, Incorporated, 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 ($517,000 940,000 units) Parker Plastic had the following actual results for the past year. Number of units produced and sold 1,840,000 Standard Quantity 12 square foot 0.45 hour Standard Price (Rate) $ 0.68 per square foot $ 10.35 per hour $ 8.85 per hour 0.45 hour Standard Unit Cost $ 8.16 4.66 0.38 0.55

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 2PB: The following product costs are available for Kellee Company on the production of eyeglass frames:...

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