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 had the following actual results last year:

Required:
1. 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.)

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.)

3. 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.)

Standard Quantity Standard Price (Rate) Standard Unit Cost Direct materials (clay) 1.90 lbs. $ 2.00 per lb. $ 3.80 Direct labor 1.90 hrs. $ 15.00 per hr. 28.50 Variable manufacturing overhead (based on direct labor hours) 1.90 hrs. $ 1.20 per hr. 2.28 Fixed manufacturing overhead ($520,000.00 ÷ 200,000.00 units) 2.60

Explanation / Answer

1) direct material price variance (Actua price - standard price)*aqpurchased (794,220    - 378200*2) 37820 U direct material qty variance (AQ used - standard qty allowed)*standard rate (378,200   - 205000*1.90)*2 22600 F direct materials spending variance 15220 U 2) direct labor rate variance (Actual price - standard rate )*ah (5,875,000     - 15*250000) 2125000 U direct labor efficiency vriance (AH - SG)*standard rate (250,000   - 205000*1.9)*15 2092500 F direct labor spending variance 32500 U 3) variable overhead rate (Actual price - standard rate )*ah (450,000 - 250000*1.2) 150000 U variable overhead efficiecny variance (AH - SG)*standard rate (250000   - 205000*1.9)*1.2 167400 F direct labor spending variance 17400 F

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