Question

help appreciated! Thank you in advance :)

Barley Hopp, Inc., manufactures custom-ordered commemorative beer steins. Its standard cost information follows: Standard Price Standard Standard Quantity 1.5 lbs 1.9 hrs Unit Cost (Rate) $ 1.90 per lb. $12.00 per hr Direct materials (clay Direct labor Variable manufacturing overhead (based on direct labor hours) Fixed manufacturing overhead ($221,760 88,000 units) 2.85 22.80 1.9 hrs $ 1.80 per hr 3.42 2.52 Barley Hopp had the following actual results last year: Number of units produced and sold Number of pounds of clay used Cost of clay 111,300 120,000 $ 210,000 151,300 $651,300 $ 203,300 $ 315,000 Number of labor hours worked Direct labor cost Variable overhead cost Fixed overhead cost Required: Prepare the journal entry to record Barley Hopp's fixed manufacturing overhead costs and related variances for last year. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet

Answer 1

Solution:

Journal Entries - Barley Hopp
Event	Particulars	Debit	Credit
1	Work in process Dr (111300*$2.52)	$280,476.00
	Fixed overhead spending variance Dr ($221,760-$315,000)	$93,240.00
	To Cash		$315,000.00
	To Fixed overhead volume variance		$58,716.00
	(To record fixed manufacturing overhead)