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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) 1.90
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) | 1.90 | pounds | $ 2.00 | per pound | $ 3.80 | |
Direct labor | 1.90 | hours | $ 15.00 | per hour | 28.50 | |
Variable manufacturing overhead (based on direct labor hours) | 1.90 | hours | $ 1.20 | per hour | 2.28 | |
Fixed manufacturing overhead ($520,000.00 200,000.00 units) | 2.60 |
Barley Hopp had the following actual results last year:
Number of units produced and sold | 205,000 |
---|---|
Number of pounds of clay purchased and used | 378,200 |
Cost of clay | $ 794,220 |
Number of labor hours worked | 250,000 |
Direct labor cost | $ 5,875,000 |
Variable overhead cost | $ 450,000 |
Fixed overhead cost | $ 510,000 |
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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