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 Standard Price Quantity 60 lbs 1.70 per lb 1.60 hrs. $12.00 per hr. Standard Unit Cost $2.72 19.20 1.76 (Rate) Direct materials (clay) Direct labor Variable manufacturing overhead (based on 1.60 hrs. 1.10 per hr direct labor hours) Fixed manufacturing overhead ($450,000.00 3.00 150,000.00 units) Barley Hopp had the following actual results last year: Number of units produced and sold Number of Cost of clay Number of labor hours worked Direct labor cost Variable overhead cost Fixed overhead cost 155,000 278,200 S 445,120 200,000 S3,000,000 S 300,000 S 470,000 pounds of clay used 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.) Direct Materials Price Variance Direct Materials Quantity Variance Direct Materials Spending Variance

Explanation / Answer

Direct materials price variance=445120-(278200*1.7)= $27820 F Direct materials quantity variance=1.7*(278200-155000*1.6)= $51340 U Direct materials spending variance=445120-(155000*2.72)= $23520 U

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