FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Barley Hopp, Incorporated, manufactures custom-ordered commemorative beer steins. Its
Standard Quantity | Standard Price (Rate) | Standard Unit Cost | |||
---|---|---|---|---|---|
Direct materials (clay) | 1.60 | pounds | $ 1.70 | per pound | $ 2.72 |
Direct labor | 1.60 | hours | $ 14.00 | per hour | 22.40 |
Variable manufacturing |
1.60 | hours | $ 1.30 | per hour | 2.08 |
Fixed manufacturing overhead ($352,000.00 ÷ 160,000.00 units) | 2.20 |
Barley Hopp had the following actual results last year:
Number of units produced and sold | 165,000 |
---|---|
Number of pounds of clay purchased and used | 298,200 |
Cost of clay | $ 536,760 |
Number of labor hours worked | 210,000 |
Direct labor cost | $ 3,780,000 |
Variable overhead cost | $ 320,000 |
Fixed overhead cost | $ 355,000 |
Required:
- Calculate the direct materials price, quantity, and total spending variances for Barley Hopp.
- Calculate the direct labor rate, efficiency, and total spending variances for Barley Hopp.
- Calculate the variable overhead rate, efficiency, and total spending variances for Barley Hopp.
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