Barley Hopp, Inc., manufactures custom-ordered commemorative beer steins. Its standard cost information follows: Standard Quantity Standard Price Standard (Rate) Unit Cost Direct materials (clay) Direct labor 1.70 hrs. 1.70 lbs. $ 1.80 per lb. $10.00 per hr. $ 3.06 17.00 Variable manufacturing overhead (based on direct labor hours) 1.70 hrs. $ 1.10 per hr. 1.87 Fixed manufacturing overhead ($402,500.00+175,000.00 units) 2.30 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 180,000 328,200 $ 623,580 225,000 $3,082,500 $ 350,000 $ 400,000 Required: 1. Calculate the direct materials price, quantity, and total spending variances for Barley Hopp. 2. Calculate the direct labor rate, efficiency, and total spending variances for Barley Hopp. 3. Calculate the variable overhead rate, efficiency, and total spending variances for Barley Hopp.
Barley Hopp, Inc., manufactures custom-ordered commemorative beer steins. Its standard cost information follows: Standard Quantity Standard Price Standard (Rate) Unit Cost Direct materials (clay) Direct labor 1.70 hrs. 1.70 lbs. $ 1.80 per lb. $10.00 per hr. $ 3.06 17.00 Variable manufacturing overhead (based on direct labor hours) 1.70 hrs. $ 1.10 per hr. 1.87 Fixed manufacturing overhead ($402,500.00+175,000.00 units) 2.30 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 180,000 328,200 $ 623,580 225,000 $3,082,500 $ 350,000 $ 400,000 Required: 1. Calculate the direct materials price, quantity, and total spending variances for Barley Hopp. 2. Calculate the direct labor rate, efficiency, and total spending variances for Barley Hopp. 3. Calculate the variable overhead rate, efficiency, and total spending variances for Barley Hopp.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Hansaben

Transcribed Image Text:Barley Hopp, Inc., manufactures custom-ordered commemorative beer steins. Its standard cost information follows:
Standard
Quantity
1.70 lbs.
Standard Price
(Rate)
Standard
Unit Cost
$ 3.06
17.00
Direct materials (clay)
Direct labor
1.70 hrs.
$ 1.80 per lb.
$10.00 per hr.
Variable manufacturing overhead (based
on direct labor hours)
1.70 hrs.
$ 1.10 per hr.
1.87
Fixed manufacturing overhead
($402,500.00 + 175,000.00 units)
2.30
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
180,000
328,200
$ 623,580
225,000
$3,082,500
$
350,000
$ 400,000
Required:
1. Calculate the direct materials price, quantity, and total spending variances for Barley Hopp.
2. Calculate the direct labor rate, efficiency, and total spending variances for Barley Hopp.
3. Calculate the variable overhead rate, efficiency, and total spending variances for Barley Hopp.
Expert Solution

This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 5 steps

Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you


Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,

Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,


Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,

Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON

Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education

Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education