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: 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. $ 10.00 per hr. 17.00 Variable manufacturing overhead (based on direct labor hours) 1.70 hrs. $ 1.10 per hr. 1.87 Fixed manufacturing overhead ($402,500.00 ÷ 175,000.00 units) 2.30 -------------------------------------------------------------------------------- Barley Hopp had the following actual results last year: Number of units produced and sold 180,000.00 Number of pounds of clay used 328,200.00 Cost of clay $ 623,580.00 Number of labor hours worked 225,000.00 Direct labor cost $ 3,082,500.00 Variable overhead cost $ 350,000.00 Fixed overhead cost $ 400,000.00 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.)
DL rate variance=
DL efficiency variance=
DL labor spending var=

Explanation / Answer

DL labor Rate var AH*SR AH*AR Variance 225,000*1.10 Given 2,47,500.00 30,82,500.00 -28,35,000.00 Un Favorable DL efficiency variance AQ*SH*SR AH*SR Variance 180,000.00*1.70*1.10 225,000*1.10 336600 2,47,500.00 89,100.00 Favorable DL labor spending var AH*SR AH*AR Variance 225,000*1.10 Given 2,47,500.00 30,82,500.00 -28,35,000.00 Un Favorable

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