Question

Barley Hopp, Inc., manufactures custom-ordered commemorative beer steins. Its standard cost information follows: Direct materials (clay) Direct labor Variable manufacturing overhead (based on direct labor hours) Fixed manufacturing overhead (5356.500.00 - 155,000.00 units) Standard Quantity 1.70 lbs. 1.70 hrs. 1.70 hrs. Standard Price (Rate) $ 1.80 per lb. $13.00 per hr. $ 1.40 per hr. Standard Unit Cost $ 3.06 22.10 2.38 2.30 Barley Hopp had the following actual results last year: Number of units produced and sold Number of pounds of clay used Cost of clay Number of labor hours worked Direct labor cost Variable overhead cost Fixed overhead cost 160.000 288,200 $ 547.580 205.000 $3.587.500 $310.000 $ 350.000 Required: 1. Calculate the direct materials price, quantity, and total spending variances for Barley Hopp. (Do not round your intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable and "U" for unfavorable.) Direct Materials Price Variance Direct Materials Quantity Variance Direct Materials Spending Variance 2. Calculate the direct labor rate, efficiency, and total spending variances for Barley Hopp. (Do not round your intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable and "U" for unfavorable.) Direct Labor Rate Variance Direct Labor Efficiency Variance Direct Labor Spending Variance 3. Calculate the variable overhead rate, efficiency, and total spending variances for Barley Hopp. (Do not round your intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable/Overapplied and "U" for unfavorable underapplied.) Variable Overhead Rate Variance Variable Overhead Efficiency Variance Variable Overhead Spending Variance

Answer 1

28820 U 29160 U 57980lu Answer (1) Mateial Price Variance (AQ*AP)-(AQ*SP) Matrial Quanity Varaince (AQ*SP)-(SQ*SP) Direct Material Spending Variance - 2 Labor rate Variance (AH*AR)-(AH*SR) labor Efficiency Varaince (AH*SR)-(SH*SR) Direct Labor spending Varaince 3 Overhead Rate Variance (AH*AR)-(AH*SR) Overhead Efficiency Varaince (AH*SR)-(SH*SR) Variable overhead Spending Variance 922500 U 871000 F 51500 U 23000 U 93800 70800 F

sQ 1.80 Per lb 1.7 Lbs 272000 Lbs 160000 Units 288200 Lbs 288200 Lbs 1.90 Per lb Data Direct Material Standard Price SP Standard quantity Per unit Standard Quantity for Actual Output Actual Output Actual Quantity Purchased AQP Actual Quanity Used AQ Actual Price of Material AP Direct Labor Standard Rate SR Standard hours per unit Standard Hours for Actual output SH Actual Output Actual hours Worked AH Actual Rate AR Varaible OH Standard Rate SR Standard hours per unit Standard Hours for Actual output SH Actual Output Actual hours Worked AH Actual rate A L 13 Per hour 1.7 hours 272000 Hours 160000 Units 205000 hours 17.50 Per hour 1.40 Per hour 1.70 hours 272000 Hours 160000 Units 205000 hours 1.51 Per hour