Question 2 (1.5 points) Calculating Direct Material Variances Barley Hop, Inc., manufactures custom-ordered commemorative beer steins. Its standard cost information follows: Standard Quantity 11.4 pounds per unit Standard Price $1.6 per pound Direct Material (clay) Actual results were as follow: . Produced and sold 110,000 units. . Purchased and used 178,200 pounds of clay at a total cost of $267,300. 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) = purchased Spending Variance Actual Costs AQX AP Flexible Budget SQ X SP AQ X SP Price Variance Quantity Variance Spending Variance