Question

Barley Hopp, Inc., manufactures custom-ordered commemorative beer steins. Its standard cost information follows: Standard Quantity 1.68 lbs 1.6e hrs. Standard Price (Rate) $ 1.70 per lb. $16.00 per hr. Standard Unit Cost $ 2.72 25.68 Direct materials (clay) Direct labor Variable manufacturing overhead (based on direct labor hours) Fixed manufacturing overhead ($374,000.e0 +170,e00.00 units) $ 1.38 per hr. 1.60 hrs. 2.08 2.20 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 175,000 318,200 $ 572,760 220,০ $4,510,000 $ 348,৪ $ 388,000 Required: 1. Colculate the direct meterials price. quantity, and total spending variances for Barley Hopp. 2. Colculate the direct labor rate, efficiency, and total spending variances for Barley Hopp. 3. Celculate 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 materials price variance	31820	U	=572760-(318200*1.7)
Direct materials Quantity variance	64940	U	=1.7*(318200-175000*1.6)
Direct materials spending variance	96760	U	=572760-(175000*2.72)
2
Direct labor rate variance	990000	U	=4510000-(220000*16)
Direct labor efficiency variance	960000	F	=16*(220000-175000*1.6)
Direct labor spending variance	30000	U	=4510000-(175000*25.6)
3
Variable overhead rate variance	54000	U	=340000-(220000*1.3)
Variable overhead efficiency variance	78000	F	=1.3*(220000-175000*1.6)
Variable overhead spending variance	24000	F	=340000-(175000*2.08)