PA9-1 Calculating Direct Material, Direct Labor, Variable Overhead Variances [LO 9-3, 9-4, 9-5]

Barley Hopp, Inc., manufactures custom-ordered commemorative beer steins. Its standard cost information follows:

Standard QuantityStandard Price (Rate)Standard Unit CostDirect materials (clay)1.80lbs.$1.90per lb.$3.42Direct labor1.80hrs.$11.00per hr.19.80Variable manufacturing overhead (based on direct labor hours)1.80hrs.$1.10per hr.1.98Fixed manufacturing overhead ($396,000.00 180,000.00 units)2.20

Barley Hopp had the following actual results last year:

Number of units produced and sold185,000Number of pounds of clay used338,200Cost of clay$676,400Number of labor hours worked230,000Direct labor cost$3,680,000Variable overhead cost$360,000Fixed overhead cost$380,000

Required:

1.Calculate the direct materials price, quantity, and total spending variances for Barley Hopp.(Do not round your intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable and "U" for unfavorable.)

2.Calculate the direct labor rate, efficiency, and total spending variances for Barley Hopp.(Do not round your intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable and "U" for unfavorable.)

3.Calculate the variable overhead rate, efficiency, and total spending variances for Barley Hopp.(Do not round your intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable/Overapplied and "U" for unfavorable/underapplied.)

value: 10.00 points PAS-1 Calculating Direct Material, Direct Labor. Variable Overhead Variances [L0 9-3, 9-4, 9-5] Barley Hopp. Inc.I manufactures custom-ordered commemorative beer stains. Its standard cost infom'iation follows: Billiard Standard Price Standard Mny {Reta} Unit Gust Direct materials (clay) 1.00 lbs. 5 1.90 per lb. 3 3.42 Direct labor 1.00 hrs. $11.00 per hr. 19.80 Variable manufacturing overhead [based on direct labor hours} 1.00 hrs. 5 1.10 perhr. 1.90 Fixed manufacturing overhead {$396,000.00 + 2 20 180,000.00 units) ' ' Barley Hopp had the following actual results last year: Number of units produced and sold 185,000 Number of pounds of clay used 338200 Cost of clay $ 6T6r400 Number of labor hours worked 230,000 Direct labor cost $3,600r000 Variable overhead cost 3 360300 Fixed overhead cost 3 330,000 I Required: 1. Calculate the direct materials price. quantity. and total spending vanences for Barley Hopp. [Do not round your Intermediate calculations. and "U" for unfavorable.) Direct Materials Price Variance Direct Materials Quantity Variance Direct Materials Spending Variance 2. Calculate the direct labor rare, efciency. and fatal spending variances for Barley Hopp. [Do not round your lntermedlate calculatlcne. Indicate the effect of each variance by selectan \"F\" for favorable and "U' for unfavorable.) Direct Labor Rate Variance Direct Labor Efciency Variance Direct Labor Spending Variance 3. Calculate the variable overhead rate, efciency. and halal spending variances for Barley Hcpp. [Do no! round your Inlaen'nedlate calculatlcne. Indicate the effect of each varlance by selectan "F" for favorablei'Overepplled and \"U" for unfavorablel'u nderapplled.) Variable Overhead Rafe Variance Variable Overhead Efficiency Variance Variable Overhead Spending Variance