FINANCIAL ACCOUNTING
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 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:

  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.
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