Part 10 (10 points): Barley Hop, Inc., manufactures custom-ordered commemorative beer steins. Its standard cost information follows: Standard Quantity | 1.2 hours per unit Standard Rate $10 per hour Direct Labor Actual results were as follow: . Produced and sold 100,000 units. The direct labor cost was $1,950,000 for 150,000 hours. Required: Fill in the following blanks to calculate Barley Hop's direct labor variances and label them as favorable (F) or unfavorable (U). Solution: Actual rate (AR) of labor = Actual hours (AH) used = Standard rate (SR) of labor = Standard hours (SH) = Spending Variance Actual Costs AH X AR Flexible Budget SH X SR AH X SR Rate Variance Efficiency Variance Spending Variance Part 9 (10 points): Barley Hop, Inc., manufactures custom-ordered commemorative beer steins. Its standard cost information follows: Standard Quantity | 1.2 pounds per unit Standard Price $1.4 per pound Direct Material (clay) Actual results were as follow: Produced and sold 100,000 units. Purchased and used 130,000 pounds of clay at a total cost of $208,000. Required: Fill in the following blanks to calculate Barley Hop's direct material variances and label them as favorable (F) or unfavorable (U). Solution: Actual price (AP) for each pound of clay = Actual quantity (AQ) of clay purchased = Standard price (SP) for each pound of clay= Standard quantity (SQ) = Spending Variance Actual Costs AQ X AP Flexible Budget SQ X SP AQ X SP Price Variance Quantity Variance Spending Variance