PA9-1 (Algo) Calculating Direct Material, Direct Labor, Variable Overhead Variances [LO 9-3, 9-4, 9-5]
Barley Hopp, Inc., manufactures custom-ordered commemorative
beer steins. Its standard cost information follows:
Standard Quantity | Standard Price (Rate) | Standard Unit Cost | ||||||
Direct materials (clay) | 1.70 | lbs. | $ | 1.80 | per lb. | $ | 3.06 | |
Direct labor | 1.70 | hrs. | $ | 11.00 | per hr. | 18.70 | ||
Variable manufacturing overhead (based on direct labor hours) | 1.70 | hrs. | $ | 1.10 | per hr. | 1.87 | ||
Fixed manufacturing overhead ($420,500.00 รท 145,000.00 units) | 2.90 | |||||||
Barley Hopp had the following actual results last year:
Number of units produced and sold | 150,000 | |
Number of pounds of clay used | 268,200 | |
Cost of clay | $ | 455,940 |
Number of labor hours worked | 195,000 | |
Direct labor cost | $ | 2,827,500 |
Variable overhead cost | $ | 290,000 |
Fixed overhead cost | $ | 440,000 |
Required:
1. Calculate the direct materials price, quantity, and
total spending variances for Barley Hopp.
2. Calculate the direct labor rate, efficiency,
and total spending variances for Barley
Hopp.
3. Calculate the variable overhead rate,
efficiency, and total spending variances for Barley
Hopp.
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, "U" for unfavorable, and "None" for no effect (i.e., zero variance).)
|
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, "U" for unfavorable, and "None" for no effect (i.e., zero variance).)
|
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, "U" for unfavorable, and "None" for no effect (i.e., zero variance).)
|
Answers
Actual DATA for |
150000 |
units |
|
Quantity (AQ) |
Rate (AR) |
Actual Cost |
|
Direct Material |
268200 |
$ 1.70 |
$ 455,940.00 |
Direct labor |
195000 |
$ 14.50 |
$ 2,827,500.00 |
Variable Overhead |
195000 |
$ 1.49 |
$ 290,000.00 |
Standard DATA for |
150000 |
units |
|
Quantity (SQ) |
Rate (SR) |
Standard Cost |
|
[A] |
[B] |
[A x B] |
|
Direct Material |
( 1.7 lbs x 150000 units)=255000 lbs |
$ 1.80 |
$ 459,000.00 |
Direct labor |
( 1.7 hours x 150000 units)=255000 hours |
$ 11.00 |
$ 2,805,000.00 |
Variable Overhead |
( 1.7 hours x 150000 units)=255000 hours |
$ 1.10 |
$ 280,500.00 |
Material Price Variance |
||||||
( |
Standard Rate |
- |
Actual Rate |
) |
x |
Actual Quantity |
( |
$ 1.80 |
- |
$ 1.70 |
) |
x |
268200 |
26820 |
||||||
Variance |
$ 26,820.00 |
Favourable-F |
||||
Material Quantity Variance |
||||||
( |
Standard Quantity |
- |
Actual Quantity |
) |
x |
Standard Rate |
( |
255000 |
- |
268200 |
) |
x |
$ 1.80 |
-23760 |
||||||
Variance |
$ 23,760.00 |
Unfavourable-U |
||||
Material Spending Variance |
||||||
( |
Standard Cost |
- |
Actual Cost |
) |
||
( |
$ 459,000.00 |
- |
$ 455,940.00 |
) |
||
3060 |
||||||
Variance |
$ 3,060.00 |
Favourable-F |
||||
Labor Rate Variance |
||||||
( |
Standard Rate |
- |
Actual Rate |
) |
x |
Actual Labor Hours |
( |
$ 11.00 |
- |
$ 14.50 |
) |
x |
195000 |
-682500 |
||||||
Variance |
$ 682,500.00 |
Unfavourable-U |
||||
Labour Efficiency Variance |
||||||
( |
Standard Hours |
- |
Actual Hours |
) |
x |
Standard Rate |
( |
255000 |
- |
195000 |
) |
x |
$ 11.00 |
660000 |
||||||
Variance |
$ 660,000.00 |
Favourable-F |
||||
Labor Spending Variance |
||||||
( |
Standard Cost |
- |
Actual Cost |
) |
||
( |
$ 2,805,000.00 |
- |
$ 2,827,500.00 |
) |
||
-22500 |
||||||
Variance |
$ 22,500.00 |
Unfavourable-U |
||||
Variable Overhead Rate Variance |
||||||
( |
Standard Rate |
- |
Actual Rate |
) |
x |
Actual Labor Hours |
( |
$ 1.10 |
- |
$ 1.49 |
) |
x |
195000 |
-75500 |
||||||
Variance |
$ 75,500.00 |
Unfavourable-U |
||||
Variable Overhead Efficiency Variance |
||||||
( |
Standard Hours |
- |
Actual Hours |
) |
x |
Standard Rate |
( |
255000 |
- |
195000 |
) |
x |
$ 1.10 |
66000 |
||||||
Variance |
$ 66,000.00 |
Favourable-F |
||||
Variable Overhead Spending Variance |
||||||
( |
Standard Cost |
- |
Actual Cost |
) |
||
( |
$ 280,500.00 |
- |
$ 290,000.00 |
) |
||
-9500 |
||||||
Variance |
$ 9,500.00 |
Unfavourable-U |
PA9-1 (Algo) Calculating Direct Material, Direct Labor, Variable Overhead Variances [LO 9-3, 9-4, 9-5] Barley Hopp,...
PA9-1 Calculating Direct Material, Direct Labor, Variable Overhead Variances [LO 9-3, 9-4, 9-5] 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 ($275,000.00 + 110,000.00 units) Standard Quantity 1.60 lbs. 1.60 hrs. 1.60 hrs. Standard Price (Rate) $ 1.70 per lb. $11.00 per hr. $ 1.10 per hr. Standard Unit Cost $ 2.72 17.60 1.76 2.50 Barley Hopp had the...
PA9-1 Calculating Direct Material, Direct Labor, Variable Overhead Variances [LO 9-3, 9-4, 9-5] 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 ($276,000.00 + 120,000.00 units) Standard Quantity 1.70 lbs. 1.70 hrs. 1.70 hrs. Standard Price (Rate) $ 1.80 per lb. $ 13.00 per hr. $ 1.10 per hr. Standard Unit Cost $ 3.06 22.10 1.87 2.30 Barley Hopp had...
PA9-1 Calculating Direct Material, Direct Labor, Variable Overhead Variances (LO 9-3, 9-4,9-5) Barley Hopp, Inc., manufactures custom-ordered commemorative beer steins. Its standard cost information follows Standard Quantity 170 ibs 1.70 hrs Standard Price (Rate) S1.80 per ib $14.00 per hr Standard Unit Cost S 3.06 23.80 Direct materials (clay) Direct labor Variable manutacturing overhead (based on direct labor hours) Fixed manufacturing overhead (3456,000.00 190,000.00 units) 1.70 hrs S1.10 per hr 187 2.40 Barley Hopp had the following actual results last...
PA9-1 Calculating Direct Material, Direct Labor, Variable Overhead Variances [LO 9-3, 9-4, 9-5] Barley Hopp, Inc., manufactures custom-ordered commemorative beer steins. Its standard cost information follows: Standard Standard Price Standard Quantity (Rate) Unit Cost Direct materials (clay) 1.70 lbs. $ 1.80 per Ib. $ 3.06 Direct labor 1.70 hrs. $13.00 per hr. 22.10 Variable manufacturing overhead (based on on 1.70 hrs. $ 1.10 per hr. 1.87 direct labor hours) Fixed manufacturing overhead ($276,000.00 + 2.30 120,000.00 units) Barley Hopp had...
PA9-1 Calculating Direct Material, Direct Labor, Variable Overhead Variances (LO 9-3, 94, 9-5) Barley Hopp, Inc., manufactures custom ordered commemorative beer steins. Its standard cost information follows: Standard Pro Standard Unit Cost Sundard Quantity 170 1.70 hrs 0 5 Direct materials clay Direct labor Vare manufacturing overhead based on direct labor hours) Fixed manufacturing overhead 5350 50000 155 000 00 units) 180 perb 1300 perhe 10 perhe 22 10 2.30 Barley Hopp had the following actual results last year Number...
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 ($356,500.00 = 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...
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...
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 ($425,500.00 + 185,000.00 units) Standard Quantity 1.70 lbs. 1.70 hrs. 1.70 hrs. Standard Price (Rate) $ 1.80 per lb. $12.00 per hr. $ 1.10 per hr. Standard Unit Cost $ 3.06 20.40 1.87 2.30 Barley Hopp had the following actual results last year: Number of units produced and sold Number of...
Barley Hopp, Inc., manufactures custom-ordered commemorative beer steins. Its standard cost information follows. Direct materials (clay) Standard Quantity 1.70 lbs. Standard Standard Price (Rate) Unit Cost $ 1.89 $ 3.86 1.70 hrs. $ 10.00 per hr. 17.00 Direct labor Variable manufacturing overhead (based on direct labor hours) Fixed manufacturing overhead ($346,500.00 + 165,000.00 units) per 1.70 hrs. $ 1.40 hr. 2.38 2.10 Barley Hopp had the following actual results last year Number of units produced and sold 170,000 Number of...
Barley Hopp, Inc., manufactures custom-ordered commemorative beer steins. Its standard cost information follows: Standard Quantity 1.70 lbs 1.70 hrs. Standard Price (Rate) $ 1.8e per lb. $10.00 per hr. Standard Unit Cost $ 3.06 17.00 Direct materials (clay) Direct labor Variable manufacturing overhead (based on direct labor hours) Fixed manufacturing overhead ($346,500.00 165,808.88 units) 1.70 hrs. $ 1.40 per hr. 2.38 2.10 Barley Hopp had the following actual results last year: Number of units produced and sold Number of pounds...