Barley Hopp, Incorporated, manufactures custom-ordered commemorative beer steins. Its standard cost information follows: 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 overhead (based on direct labor hours) 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.
Barley Hopp, Incorporated, manufactures custom-ordered commemorative beer steins. Its standard cost information follows: 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 overhead (based on direct labor hours) 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
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.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education