Parker Plastic had the following actual results for the past year:
Number of units produced and sold
1,000,000
Number of square feet of plastic used
11,500,000
Cost of plastic purchased and used
$
7,360,000
Number of labor hours worked
345,000
Direct labor cost
$
3,398,250
Variable overhead cost
$
293,250
Fixed overhead cost
$
388,000
Required: Calculate Parker Plastics fixed overhead spending and volume variances and its over- or underapplied fixed overhead. (Indicate the effect of each variance by selecting "F" for favorable/Overapplied and "U" for unfavorable/underapplied.)
Answer & Explanation
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