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: Barley Hopp tad tne following actual results last year Prepare the journal entry to the direct materials, direct labor. vanatte overhead costs and related vacancies for Barley Hopp. Assume the company pu-chases raw materas as needed and does not maintain any ending nventones. (If no entry is required for a transaction event, select "No Journal Entry Required" In the first account field.)

Explanation / Answer

Standard Costs Qty/Hr Rate Cost   Direct Materials              2.00               1.40           2.80 Direct Labor              2.30               7.00        16.10 Variable OH              2.30               1.70           3.91 Fixed Overhead           2.57 Actual Information Details Actual units Actual Qty/Hr Actual Rate Actual Amt Std Qty/Hr Actual Output Direct Materials         99,500        229,000           1.25       286,250     199,000 Direct Labor         99,500        198,850           8.20 1,630,570     228,850 Variable OH         99,500        198,850           2.20       437,470     228,850 Fixed Overhead         99,500       260,000 Direct Materials Price Variance= Actual Qty Used( Actual Rate-Std Rate) =229000*(1.25-1.40)=         34,350 (F) Direct Material Efficiency Variance =Std Rate ( Actual Qty used-Std qty for actual output)   =1.40*(229000-199000)         42,000 (U) Direct Labor Rate Variance= Actual Hrs Used( Actual Rate-Std Rate) =198850*(8.20-7)       238,620 (U) Direct LAbor Efficiency Variance =Std Rate ( Actual Hrs used-Std Hrs for actual output)   =7*(198850-228850)       210,000 (F) Variable Overhead Rate Variance= Actual Qty Used( Actual Rate-Std Rate) =198850*(2.2-1.7)         99,425 (U) Variable Overhead Efficiency Variance =Std Rate ( Actual Qty used-Std qty for actual output)      =1.7*(198850-228850)         51,000 (F) Journal Entries Account Title Dr $ Cr $      1 WIP         278,600 Direct Materials Price Variance          34,350 Direct Materials Efficiency Variance         42,000 Cash/Accounts Payable        286,250      2 WIP   1,601,950 Direct LAbor Price Variance       238,620 Direct Labor Efficiency Variance        210,000 Cash/Accounts Payable    1,630,570      3 WIP         389,045 Variable Overheadr Price Variance         99,425 Variable Overhead Efficiency Variance          51,000 Cash/Accounts Payable        437,470

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