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.

Direct Materials Price Variance $33820 F

Direct Materials Quantity Variance $9880 U

Direct Materials Spending Variance $43700 U

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 _________ F/U

Direct Labor Efficiency Variance __________F/U

Direct Labor Spending Variance ___________F/U

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 ____________F/U

Variable Overhead Efficiency Variance __________F/U

Variable Overhead Spending Variance ____________F/U

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

Explanation / Answer

Direct Material

Direct Labour

Variable Overhead

Direct Material Quantity Per Unit(lbs) (SQ) 1.8 Direct Material Price Per LBS ($) (SP) 1.9 No of Units Produced and sold 185000 SQ for Actual Units produced and sold: (185000*1.8) 333000 Number Of Pounds of clay used: (AQ) 338200 Cost of Clay: (AP*AQ) 676400 AP per Unit (676400/338200) 2 Material Variance Material Price Variance AQ*(SP-AP) 338200*(1.9-2) -33820 Unfavourable Material Quantity Variance SP*(SQ-AQ) 1.9*(333000-338200) -9880 Unfavourable Total Material Cost Variance -43700 Unfavourable

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