Barley Hopp, Inc., manufactures custom-ordered commemorative beer steins Its sta

Question

Barley Hopp, Inc., manufactures custom-ordered commemorative beer steins Its standard cost information follows: Standard Standard Price Quantay 1.80 lbs1.70 per lb 1.80 h2.00 per hr. 1.60 hrs. 1.10 per hr. Standard Unit Cost s 2.72 10.20 (Rate) irect materials (clay) Direct labor arisble manufacturing overhead (based on 1.78 dfrect labor hours) Foed manufacturing overhead (3253.000.00 2 20 15.000.00 units Barley Hopp had the folowing actual results last year Number of units produced and sold Number of pounds of clay ured Cost of dl Number of labor hours worked Direct labor cost Variable overnead cost 120,000 208,200 3 333,120 165,000 32.343.000 s 230,000 S 285,000 Required: 1. Calculate the direct materials price, quantity, and total spending variances for Barley Hopp. (Do not round your intermed iate calculations. Indicate the effect of each variance by selecting Ffor favorable and "U" for unfavorable.) Direct Materiala Price Varianoe Direct Materials Quentity Variance Direct Materials Spending Varianoe 2. Clate 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 favorablelOverapplied and "U" for unfavorablelunderapplied.) Variable Overhead Rate Variancs Variable Overhead Efmiciency Veriance Variable Overhead Spending Variance

Explanation / Answer

1 Direct materials price variance=333120-(208200*1.7)= $20820 F Direct materials quantity variance=1.7*(208200-120000*1.6)= $27540 U Direct materials spending variance=333120-(120000*2.72)= $6720 U 2 Direct labor rate variance=2343000-(165000*12)= $363000 U Direct labor efficiency variance=12*(165000-120000*1.6)= $324000 F Direct labor spending variance=2343000-(120000*19.2)= $39000 U 3 Variable overhead rate variance=230000-(165000*1.1)= $48500 U Variable overhead efficiency variance=1.1*(165000-120000*1.6)= $29700 F Variable overhead spending variance=230000-(120000*1.76)= $18800 U

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