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.)

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 fixed overhead spending variance for Barley Hopp. (Do not round your intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable,"U" for unfavorable.)



2. Calculate the fixed overhead volume variance for Barley Hopp. (Do not round your intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable,"U" for unfavorable.)



3. Calculate the total over- or underapplied fixed manufacturing overhead for Barley Hopp. (Do not round your intermediate calculations.)

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. $ 16.00 per hr. 25.60 Variable manufacturing overhead (based on direct labor hours) 1.60 hrs. $ 1.20 per hr. 1.92 Fixed manufacturing overhead ($364,500.00 ÷ 135,000.00 units) 2.70

Explanation / Answer

ans 1 Direct Material Price Variance 24820 F AQ*(AR-SR) -24820 397120-(248200*1.7) Direct material Qty varaince 41140 U SR*(AQ-SQ allowed) 1.7*(248200-(140000*1.6)) Total spending variance 16320 U 41140-24820 ans 2 Labor rate variance 248000 U (AH*AR)-(AH*SR) 1798000-(155000*10) Labor efficiency variance 690000 F SR*(AH-SH allowed) -690000 10*(155000-(140000*1.6)) Total spending variance 442000 F 690000-248000 ans 3 Variable overhead spending variance (AH*AR)-(AH*SR) 39500 U 210000-(155000*1.1) Variable overhead efficiency variance 75900 F SR*(AH-SH allowed) -75900 1.1*(155000-(140000*1.6)) Total spending variance 36400 F 79500-39500 ans 1 Fixed overhead spending variance 2000 F Budgetd overhead-actual overhead 273000-275000 Volume variance 11000 U Absorbed-Budgeted fixed overhead (110000*2.6)-275000 ans 3 actual 273000 Applied (110000*2.6) 286000 Overapplied 13000

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