Barley Hopp, Incorporated, manufactures custom-ordered commemorative beer steins. Its standard cost information follow Standard Unit Direct materials (clay) Direct labor Variable manufacturing overhead (based on direct labor hours) Fixed manufacturing overhead ($250,000+ 100,000 units) Barley Hopp had the following actual results last year: Number of units produced and sold Number of pounds of clay purchased and used Cost of clay Number of labor hours worked Direct labor cost Variable overhead cost Fixed overhead cost Standard Quantity 1.5 pounds 1.5 hours 1.5 hours 110,000 178,200 $ 267,300 150,000 $ 2,025,000 200,000 $ 270,000 Standard Price (Rate) $ 1.60 per pound $ 12.00 per hour $ 1.20 per hour 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. Cost $2.40 18.00 1.80 2.50

Barley Hopp, Incorporated, manufactures custom-ordered commemorative beer steins. Its standard cost information follow Standard Unit Direct materials (clay) Direct labor Variable manufacturing overhead (based on direct labor hours) Fixed manufacturing overhead ($250,000+ 100,000 units) Barley Hopp had the following actual results last year: Number of units produced and sold Number of pounds of clay purchased and used Cost of clay Number of labor hours worked Direct labor cost Variable overhead cost Fixed overhead cost Standard Quantity 1.5 pounds 1.5 hours 1.5 hours 110,000 178,200 $ 267,300 150,000 $ 2,025,000 200,000 $ 270,000 Standard Price (Rate) $ 1.60 per pound $ 12.00 per hour $ 1.20 per hour 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. Cost $2.40 18.00 1.80 2.50

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter2: Basic Cost Management Concepts

Section: Chapter Questions

Problem 21E: Ellerson Company provided the following information for the last calendar year: During the year,...

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Concept explainers

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.

Question

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Required 1 Required 2 Required 3
Calculate the direct labor.rate, efficiency, and total spending variances for Barley Hopp.
Note: Do not round your intermediate calculations. Enter the dollar value of the variance as an absolute value (positive
number) and then use the drop-down menu to indicate the effect of each variance by selecting "F" for favorable, "U" for
unfavorable, and "None" for no effect (i.e., zero variance).
Direct Labor Rate Variance
Direct Labor Efficiency Variance
Direct Labor Spending Variance
< Required 1
Variable Overhead Rate Variance
Variable Overhead Efficiency Variance
Variable Overhead Spending Variance
Required 3 >
Show less
Calculate the variable overhead rate, efficiency, and total spending variances for Barley Hopp.
Note: Do not round your intermediate calculations. Enter the dollar value of the variance as an absolute value (positive
number) and then use the drop-down menu to indicate the effect of each variance by selecting "F" for favorable, "U" for
unfavorable, and "None" for no effect (i.e., zero variance).
Show less A

Barley Hopp, Incorporated, manufactures custom-ordered commemorative beer steins. Its standard cost information follows:
Standard
Unit
Cost
$ 2.40
18.00
Direct materials (clay);
Direct labor
Variable manufacturing overhead (based on direct
labor hours)
Fixed manufacturing overhead ($250,000+ 100,000
units)
Barley Hopp had the following actual results last year:
Number of units produced and sold
Number of pounds of clay purchased and used
Cost of clay
Number of labor hours worked
Direct labor cost.
Variable overhead cost
Fixed overhead cost
Standard Quantity
1.5 pounds
1.5 hours
1.5 hours
110,000
178,200
$ 267,300
150,000
$ 2,025,000
$ 200,000
$ 270,000
Standard Price (Rate).
$ 1.60 per pound
$ 12.00 per hour
$ 1.20 per hour
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.
Complete this question by entering your answers in the tabs below.
1.80
2.50
Required 1
Required 2 Required 3
Calculate the direct materials price, quantity, and total spending variances for Barley Hopp.
Note: Do not round your intermediate calculations. Enter the dollar value of the variance as an absolute value (positive
number) and then use the drop-down menu to indicate the effect of each variance by selecting "F" for favorable, "U" for
unfavorable, and "None" for no effect (i.e, zero variance).
Show less A

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