Solution
Material Price Variance | $ 33,150.00 | Unfavourable-U |
Material quantity variance | $ 48,060.00 | Unfavourable-U |
Total Material Variance | $ 83,880.00 | Unfavourable-U |
Labor rate variance | $ 1,320,000.00 | Unfavourable-U |
Labor Efficiency variance | $ 1,281,000.00 | Favourable-F |
Total Labor variance | $ 39,000.00 | Unfavourable-U |
Variable Overhead Rate Variance | $ 116,000.00 | Unfavourable-U |
Variable Overhead Efficiency Variance | $ 100,650.00 | Favourable-F |
Variable Overhead Spending Variance | $ 15,350.00 | Unfavourable-U |
Working
Actual DATA for | 195000 | Units | |
Quantity (AQ) | Rate (AR) | Actual Cost | |
Direct Material | 358200 | $ 1.90 | $ 680,580.00 |
Direct labor | 240000 | $ 19.50 | $ 4,680,000.00 |
Variable Overhead | 240000 | $ 1.58 | $ 380,000.00 |
.
Standard DATA for | 195000 | Units | |
Quantity (SQ) | Rate (SR) | Standard Cost | |
[A] | [B] | [A x B] | |
Direct Material | ( 1.7 pound x 195000 Units)=331500 pound | $ 1.80 | $ 596,700.00 |
Direct labor | ( 1.7 Hour x 195000 Units)=331500 Hour | $ 14.00 | $ 4,641,000.00 |
Variable Overhead | ( 1.7 Hour x 195000 Units)=331500 Hour | $ 1.10 | $ 364,650.00 |
.
Material Price Variance | ||||||
( | Standard Rate | - | Actual Rate | ) | x | Actual Quantity |
( | $ 1.80 | - | $ 1.90 | ) | x | 331500 |
-33150 | ||||||
Variance | $ 33,150.00 | Unfavourable-U | ||||
Material Quantity Variance | ||||||
( | Standard Quantity | - | Actual Quantity | ) | x | Standard Rate |
( | 331500 | - | 358200 | ) | x | $ 1.80 |
-48060 | ||||||
Variance | $ 48,060.00 | Unfavourable-U | ||||
Material Spending Variance | ||||||
( | Standard Cost | - | Actual Cost | ) | ||
( | $ 596,700.00 | - | $ 680,580.00 | ) | ||
-83880 | ||||||
Variance | $ 83,880.00 | Unfavourable-U | ||||
Labor Rate Variance | ||||||
( | Standard Rate | - | Actual Rate | ) | x | Actual Labor Hours |
( | $ 14.00 | - | $ 19.50 | ) | x | 240000 |
-1320000 | ||||||
Variance | $ 1,320,000.00 | Unfavourable-U | ||||
Labour Efficiency Variance | ||||||
( | Standard Hours | - | Actual Hours | ) | x | Standard Rate |
( | 331500 | - | 240000 | ) | x | $ 14.00 |
1281000 | ||||||
Variance | $ 1,281,000.00 | Favourable-F | ||||
Labor Spending Variance | ||||||
( | Standard Cost | - | Actual Cost | ) | ||
( | $ 4,641,000.00 | - | $ 4,680,000.00 | ) | ||
-39000 | ||||||
Variance | $ 39,000.00 | Unfavourable-U | ||||
Variable Overhead Rate Variance | ||||||
( | Standard Rate | - | Actual Rate | ) | x | Actual Labor Hours |
( | $ 1.10 | - | $ 1.58 | ) | x | 240000 |
$ (116,000.00) | ||||||
Variance | $ 116,000.00 | Unfavourable-U | ||||
Variable Overhead Efficiency Variance | ||||||
( | Standard Hours | - | Actual Hours | ) | x | Standard Rate |
( | 331500 | - | 240000 | ) | x | $ 1.10 |
$ 100,650.00 | ||||||
Variance | $ 100,650.00 | Favourable-F | ||||
Variable Overhead Spending Variance | ||||||
( | Standard Cost | - | Actual Cost | ) | ||
( | $ 364,650.00 | - | $ 380,000.00 | ) | ||
-15350 | ||||||
Variance | $ 15,350.00 | Unfavourable-U |
PA9-1 Calculating Direct Material, Direct Labor, Variable Overhead Variances (LO 9-3, 9-4,9-5) Barley Hopp, Inc., manufactures...
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 ÷ 145,000.00 units) 2.90 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 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) Direct labor Variable manufacturing overhead (based on direct labor hours) Fixed manufacturing overhead ($273,000.00 = 105,000.00 units) Standard Quantity 1.60 lbs. 1.60 hrs. 1.60 hrs. Standard Price (Rate) $ 1.70 per lb. $ 10.00 per hr. $ 1.10 per hr. Standard Unit Cost $ 2.72 16.00 1.76 2.60 Barley Hopp had the following actual results last year: Number of units produced and sold Number...
Barley Hopp, Inc., manufactures custom-ordered commemorative beer steins. Its standard cost information follows: Standard Standard Price Standard Quantity 1.60 lbs. (Rate) $ 1.70 per lb. $16.00 per hr. Unit Cost Direct materials (clay) 2.72 Direct labor 1,60 hrs. 25.60 Variable manufacturing overhead (based on direct labor hours) Fixed manufacturing overhead ($364,500.00 135,000.00 units) 1.20 per hr 1.60 hrs 1.92 2,70 Barley Hopp had the following actual results last year: Number of units produced and sold Number of pounds of clay...