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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) 1.70
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) | 1.70 | pounds | $ 1.80 | per pound | $ 3.06 | |
Direct labor | 1.70 | hours | $ 12.00 | per hour | 20.40 | |
Variable manufacturing overhead (based on direct labor hours) | 1.70 | hours | $ 1.10 | per hour | 1.87 | |
Fixed manufacturing overhead ($425,500.00 185,000.00 units) | 2.30 |
Barley Hopp had the following actual results last year:
Number of units produced and sold | 190,000 |
---|---|
Number of pounds of clay purchased and used | 348,200 |
Cost of clay | $ 661,580 |
Number of labor hours worked | 235,000 |
Direct labor cost | $ 3,901,000 |
Variable overhead cost | $ 370,000 |
Fixed overhead cost | $ 415,000 |
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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