Refer to the information presented in E9-6 for Parker Plastic.

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 .... 11,800,000
Cost of plastic purchased and used ...... $ 8,260,000
Number of labor hours worked ...... 245,000
Direct labor cost ............. $ 2,891,000
Variable overhead cost ......... $ 318,500
Fixed overhead cost ........... $ 355,000

Required:
Calculate Parker Plastic€™s direct labor rate and efficiencyvariances.

Standard Quantity Standard Price Standard Unit Cost Direct materials (plastic) Direct labor Variable manufacturing overhead 12 sq ft. 0.25 hr 0.25 hr (Rate) 0.72 per sq. ft. 1.20 per hr $8.64 3.05 0.30 $12.20 per hr (based on direct labor hours) Fixed manufacturing overhead 0.42 ($378,000900,000 units)