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 Standard Quantity 1.60 lbs. 1.70 per lb. 1.60 hrs. $16.00 per hr 1.60 hrs. 1.20 per hr Rate) Unit Cost Direct materials (clay) Direct labor Varia 2.72 25.60 1.92 ble manufacturing overhead (based on direct labor hours) Fixed manufacturing overhead ($364,500.00 + 2.70 135,000.00 units) Barley Hopp had the following actual results last year: Number of units produced and sold Number of pounds of clay used Cost of clay Number of labor hours worked Direct labor cost Variable overhead cost Fixed overhead cost 140,000 248,200 s 397,120 185,000 S3,626,000 S 270,000 S 380,000 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"or favorable and "U" for unfavorable.) Direct Materials Price Variance Direct Materials Quantity Variance Direct Materials Spending Variance

Explanation / Answer

1. Material variane :

2. Labour variance

3. Variable overhead variance

Variable overhead spending variance (140000*1.6*1.2-270000)

Material Price variance (1.70*248200-397120) 24820 F material quantity variance (140000*1.6-248200)1.70 41140 U Material spending variance (140000*1.6*1.7-397120) 16320 U

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