Question

Barley Hopp, Inc., manufactures custom-ordered commemorative beer steins. Its standard cost information follows: Standard Quantit Direct materials (clay) 1.70 lbs. Direct labor 1.70 hrs. Variable manufacturing overhead (based on direct labor hours) 1.70 hrs. Fixed manufacturing overhead ($346,500.00 165,000.00 units Standard Price a te $ 1.80 per 1b. $10.00 per hr. Standard Unit Cout 5 3.06 17.00 $ 1.40 per hr. 2.38 2.10 Barley Hopp had the following actual results last year: Number of units produced and sold Number of pounds of alay used Cont of clay Number of Labor hour worked Direct labor cost Variable Overhead cont Fixed Overhead coat 170,000 J08.200 SB5,580 215,000 $2,795,000 $ 330,000 340,000 Required: 1. Calculate the direct materials price, quantity, and total spending variances for Barley Hopp 2. Calculate the direct labor rate, efficiency, and total spending variances for Barley Hopp. 3. Calculate the variable overhead rate, efficiency, and total spending variances for Barley Hopp. Complete this question by entering your answers in the tabs below.

Answer 1

1)
	direct material price variance
	(Actua price - standard price)*aqpurchased
	(585580 - 1.80*308200)
	30,820	U
	direct material qty variance
	(AQ used - standard qty allowed)*standard rate
	(308200 - 170000*1.7)*1.8
	34560	U
	direct materials spending variance
	65,380	U
2)	direct labor rate variance
	(Actual price - standard rate )*ah
	(2,795,000 - 215000*10)
	645000	U
	direct labor efficiency vriance
	(AH - SG)*standard rate
	(215000 - 170000*1.7)*10
	740,000	F
	direct labor spending variance
	95000	F
3)
	variable overhead rate
	(Actual price - standard rate )*ah
	(330000 -215000*1.4)
	29000	U
	variable overhead efficiecny variance
	(AH - SG)*standard rate
	(215000-170000*1.7)*1.4
	103,600	F
	Variable overhead spending variance
	74,600	F