Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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) 1.80
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) | 1.80 | pounds | $ 1.90 | per pound | $ 3.42 | |
Direct labor | 1.80 | hours | $ 16.00 | per hour | 28.80 | |
Variable manufacturing overhead (based on direct labor hours) | 1.80 | hours | $ 1.10 | per hour | 1.98 | |
Fixed manufacturing overhead ($487,500.00 195,000.00 units) | 2.50 |
Barley Hopp had the following actual results last year:
Number of units produced and sold | 200,000 |
---|---|
Number of pounds of clay purchased and used | 368,200 |
Cost of clay | $ 736,400 |
Number of labor hours worked | 245,000 |
Direct labor cost | $ 5,806,500 |
Variable overhead cost | $ 390,000 |
Fixed overhead cost | $ 470,000 |
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.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started