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) 1.60 lbs. $ 1.70 per lb. $ 2.72 Direct labor 1.60 hrs. $ 12.00 per hr. 19.20 Variable manufacturing overhead (based on direct labor hours) 1.60 hrs. $ 1.10 per hr. 1.76 Fixed manufacturing overhead ($450,000.00 ÷ 150,000.00 units) 3.00

Barley Hopp had the following actual results last year:

Number of units produced and sold 155,000 Number of pounds of clay used 278,200 Cost of clay $ 445,120 Number of labor hours worked 200,000 Direct labor cost $ 3,000,000 Variable overhead cost $ 300,000 Fixed overhead cost $ 470,000

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

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.)

Direct Labor Rate Variance Direct Labor Efficiency Variance Direct Labor Spending Variance

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.)

Variable Overhead Rate Variance Variable Overhead Efficiency Variance Variable Overhead Spending Variance

Explanation / Answer

1 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 2 Direct labor rate variance=3000000-(200000*12)= $600000 U Direct labor efficiency variance=12*(200000-155000*1.6)= $576000 F Direct labor spending variance=3000000-(155000*19.2)= $24000 U 3 Variable overhead rate variance=300000-(200000*1.1)= $80000 U Variable overhead efficiency variance=1.1*(200000-155000*1.6)= $52800 F Variable overhead spending variance=300000-(155000*1.76)= $27200 U

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