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Barley Hopp, Inc., manufactures custom-ordered commemorative beer steins. Its standard cost information follows: Standard Standard Price Standard Quantity 1.60 lbs. (Rate) 1.70 per lb. $12.00 per hr. Unit Cost Direct materials (clay) 2.72 Direct labor 1.60 hrs. 19.20 Variable manufacturing overhead (based on direct labor hours) Fixed manufacturing overhead ($450,000.00 150,000.00 units) 1.60 hrs $ 1.10 per hr. 1.76 3.00 Barley Hopp had the following actual results last year: Number of units produced and sold Number of pounds of clay used Cost of clay 155,000 278,200 $ 445,120 200,000 $3,000,000 $ 300,000 470,000 Number of labor hours worked Direct labor cost Variable overhead cost Fixed overhead cost 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.) F Direct Materials Price Variance Direct Materials Quantity Variance Direct Materials Spending Variance

Barley Hopp, Inc., manufactures custom-ordered commemorative beer steins. Its standard cost information follows: Standard Standard Price Standard Quantity 1.60 lbs. (Rate) 1.70 per lb. $12.00 per hr. Unit Cost Direct materials (clay) 2.72 Direct labor 1.60 hrs. 19.20 Variable manufacturing overhead (based on direct labor hours) Fixed manufacturing overhead ($450,000.00 150,000.00 units) 1.60 hrs $ 1.10 per hr. 1.76 3.00 Barley Hopp had the following actual results last year: Number of units produced and sold Number of pounds of clay used Cost of clay 155,000 278,200 $ 445,120 200,000 $3,000,000 $ 300,000 470,000 Number of labor hours worked Direct labor cost Variable overhead cost Fixed overhead cost 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.) F Direct Materials Price Variance Direct Materials Quantity Variance Direct Materials Spending Variance

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Barley Hopp, Inc., manufactures custom-ordered commemorative beer steins. Its standard cost information follows: Standard Standard Price Standard Quantity 1.60 lbs. (Rate) 1.70 per lb. $12.00 per hr. Unit Cost Direct materials (clay) 2.72 Direct labor 1.60 hrs. 19.20 Variable manufacturing overhead (based on direct labor hours) Fixed manufacturing overhead ($450,000.00 150,000.00 units) 1.60 hrs $ 1.10 per hr. 1.76 3.00 Barley Hopp had the following actual results last year: Number of units produced and sold Number of pounds of clay used Cost of clay 155,000 278,200 $ 445,120 200,000 $3,000,000 $ 300,000 470,000 Number of labor hours worked Direct labor cost Variable overhead cost Fixed overhead cost 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.) F Direct Materials Price Variance Direct Materials Quantity Variance Direct Materials Spending Variance
Transcribed Image Text:Barley Hopp, Inc., manufactures custom-ordered commemorative beer steins. Its standard cost information follows: Standard Standard Price Standard Quantity 1.60 lbs. (Rate) 1.70 per lb. $12.00 per hr. Unit Cost Direct materials (clay) 2.72 Direct labor 1.60 hrs. 19.20 Variable manufacturing overhead (based on direct labor hours) Fixed manufacturing overhead ($450,000.00 150,000.00 units) 1.60 hrs $ 1.10 per hr. 1.76 3.00 Barley Hopp had the following actual results last year: Number of units produced and sold Number of pounds of clay used Cost of clay 155,000 278,200 $ 445,120 200,000 $3,000,000 $ 300,000 470,000 Number of labor hours worked Direct labor cost Variable overhead cost Fixed overhead cost 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.) F Direct Materials Price Variance Direct Materials Quantity Variance Direct Materials Spending Variance
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