Finder File Edit View Go Window Help ? ? . 75%) L. E ) Sat Jun 30 4:42 PM Alex e

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Finder File Edit View Go Window Help ? ? . 75%) L. E ) Sat Jun 30 4:42 PM Alex ezto.mheducation.com Home alamo.edu McGraw-Hill Connect Chapter 9 Exercises value: 11.11 points Barley Hopp, Inc., manufactures custom-ordered commemorative beer steins. Its standard cost information follows: Standard Standard Price Standard (Rate) Unit Cost Direct materials (clay) Direct labor Quantity 1.50 lbs. 1.60 per lb 1.50 hrs. 12.00 per hr $ 2.40 18.00 1.80 2.50 Variable manufacturing overhead (based on 1.50 hrs. 1.20 per hr 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 used Cost of clay Number of labor hours worked Direct labor cost 110,000 178,200 S 267,300 150,000 S2,025,000 S 200,000 S 270,000 ariable overhead cost Fixed overhead cost 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.) Direct Materials Price Variance Direct Materials Quantity Variance Direct Materials Spending Vaance afari.dmg 0

Explanation / Answer

Material" Actual output: 110000 units Std material allowed for actual output (110000*1.50): 165000 Std price per Lbs: 1.60 per lbs Actual quantity used: 178200 Actual price per lbs (267300/178200) = 1.50 per lbs Material price variance: Actual qty (Std price -Actual price) 178200 ( 1.60-1.50) = 17820 Fav Material Qty variance: Std price (Std qty-Actual qty) 1.60 ( 165000 -178200 ) = 21120 Unfav Material Spending variance: Std qty*Std price -Actual material cost 165000 *1.60 - 267300 = 3300 unfav Labour Actual output: 110000 units Std hours allowed for actual output (110000*1.5) = 165000 hours Std rate per hour: 12.0 per hour Actual Hours taken: 150000 hours Actual rate per hour (2025,000/150000) = 13.50 per hour Labourrate variance: Actual time takenn (Std rate -Actual rate) 150000 (12.00-13.50) = 225000 Unfav Labour efficiency variance: Std rate per hour (Std hours-Actual hours) 12.00 (165000- 150000) = 180000 Fav Labour spending Variance: Std hours*Std rate - Actual Labour c ost 165000*12 -2025000 = 45000 Unfav Actual output: 110000 units Std hours allowed for actual output (110000*1.5) = 165000 hours Std Variable OH rate per hour: 1.20 per hour Actual Hours taken: 150000 hours Actual Variable OH rate per hour (200,000/150000) = 1.33 per hour Variable OH rate variance: Actual time takenn (Std rate -Actual rate) 150000 (1.20-1.33) = 20000 Unfav Variable OH efficiency variance: Std rate per hour (Std hours-Actual hours) 1.20 (165000-150000)= 18000 Fav Variable OH spending Variance: Std hours*Std OH rate - Actual Variable OH Incurred 165000*1.20 - 200000 = $ 2000 Unfav

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