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

Question

Im confused on how to solve this problem

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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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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