Barley Hopp, Inc., manufactures custom-ordered commemorative beer steins. Its st

Question

Barley Hopp, Inc., manufactures custom-ordered commemorative beer steins. Its standard cost information follows:

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.)

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.)

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.)

Barley Hopp, Inc., manufactures custom-ordered commemorative beer steins. Its standard cost information follows:

Explanation / Answer

MATERIAL PRICE VARIANCE= (1.7 - 1.8 ) * 318200 => $ 31820 U

MATERIAL USAGE VARAINCE = (318200 - (1.6*175000)) * 1.70 => $64940 F.

MATERIAL SPENDING VARIANCE => (1.8 - 1.7) * 318200 =>$ 31820F

LABOUR PRICE VARIANCE => ( 16- 20.5) * 220000 => $ 990000 U

LABOUR EFFECIENCY VARIANCE => [220000 - ( 1.6 * 175000)] * 16 => $ 960000 U

LABOUR SPENDING VARIANCES = (20.5 - 16 ) * 220000 => $ 990000 F

VARAIBLE RATE VARIANCE= ( 1.3 - 1.55 ) * 220000 => $ 55000 U

VARIABLE EFFECIAENCY VARIANCE = 220000 - ( 1.6 * 175000) * 1.3 => $ 78000 U

VARIABLE SPENDING VARIANCE = ( 1.55 - 1.3 ) * 220000 => $ 55000 F

ACTUAL QTY ACTUAL PRICE ACTUAL COST DIRECT MATERIAL 1.82 LBS 1.8 3.28 DIRECT LABOUR 1.26 HOURS 20.5 25.83 VARIABLE O/H 1.26 HOURS 1.55 1.95

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