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Need help! Required: 1) Calculate the fixed overhead spending variance for Barley Hopp. 2) Calculate the fixed overhead volume variance for Barley Hopp. 3) Calculate
Need help!
Required:
1) Calculate the fixed overhead spending variance for Barley Hopp.
2) Calculate the fixed overhead volume variance for Barley Hopp.
3) Calculate the total over- or underapplied fixed manufacturing overhead for Barley Hopp.
Barley Hopp, Inc., manufactures custom-ordered commemorative beer steins. Its standard cost information follows:
Barley Hopp, Inc., manufactures custom-ordered commemorative beer steins. Its standard cost information follows: Direct materials (clay) Direct labor Variable (based on direct labor hours) Fixed manufacturing overhead ($487,500 195,000 units) Standard Quantity 1.8 lbs 1.8 hrs 1.8 hrs Standard Price (Rate) $ 1.90 per lb $ 16 per hr $1.1 per hr Standard Unit Cost $ 3.42 28.80 1.98 manufacturing overhead 2.50 Barley Hopp had the following actual results last year: Number of units produced and sold Number of pounds of clay used Cost of clay Number of labor hours worked Direct labor cost Variable overhead cost Fixed overhead cost 200,000 368,200 $736,400 245,000 $5,806,500 $ 390,000 $ 470,000Step by Step Solution
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