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:

Standard Quantity Standard Price (Rate) Standard Unit Cost Direct materials (clay) 1.6 lbs. $ 1.70 per lb. $ 2.72 Direct labor 1.6 hrs. $ 10 per hr. 16.00 Variable manufacturing overhead (based on direct labor hours) 1.6 hrs. $ 1.1 per hr. 1.76 Fixed manufacturing overhead ($273,000 ÷ 105,000 units) 2.60 ezto.mheducation.com Required: 1. Calculate the fixed overhead spending variance for Barley Hopp. (Do not round your intermedlate calculations. Indicate the effect of each varlance by selecting "F" for favorable, "U" for unfavorable.) 8 Answer is complete but not entirely correct d Overhead Spending VerianceS 2.000FO 2. Calculate the fixed overhead volume variance for Barley Hopp. (to not round your intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable,"U" for unfavorable.) Answer is complete but not entirely correct. ad Volume 11,000 U 3. Calculate the total over- or underapplied fixed manufacturing overhead for Barley Hopp. (Do not round your intermediate calculations.) Answer is complete but not entirely correct. Overapplied Fixed overhea S 13,000 ans 3

Explanation / Answer

1-

Fixed overhead spending variance

actual overhead applied-budgeted overhead at actual quantity

275000-273000

2000

Unfavorable

actual overhead

275000

budgeted overhead at actual quantity

273000

2-

Fixed overhead volume variance = Budgeted fixed overhead – Fixed overhead applied

275000-273000

2000

budgeted fixed overhead cost per unit

273000/110000

2.481818

total budgeted fixed overhead

110000*2.481818

273000

fixed overhead applied

275000

3-

Over applied

2000

1-

Fixed overhead spending variance

actual overhead applied-budgeted overhead at actual quantity

275000-273000

2000

Unfavorable

actual overhead

275000

budgeted overhead at actual quantity

273000

2-

Fixed overhead volume variance = Budgeted fixed overhead – Fixed overhead applied

275000-273000

2000

budgeted fixed overhead cost per unit

273000/110000

2.481818

total budgeted fixed overhead

110000*2.481818

273000

fixed overhead applied

275000

3-

Over applied

2000

Related Questions

Navigate

• Browse (All)
• Browse B
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.