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.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 2PB: The following product costs are available for Kellee Company on the production of eyeglass frames:...

See similar textbooks

Similar questions

Bullseye Company manufactures dartboards. Its standard cost information follows: Standard Quantity Standard Price (Rate) Standard Unit Cost Direct materials (cork board) 2.00 sq. ft. $ 2.80 per sq. ft. $ 5.60 Direct labor 1 hrs. $ 10.00 per hr. 10.00 Variable manufacturing overhead (based on direct labor hours) 1 hrs. $ 0.40 per hr. 0.40 Fixed manufacturing overhead ($69,000 ÷ 230,000 units) 0.30 Bullseye has the following actual results for the month of September: Number of units produced and sold 210,000 Number of square feet of corkboard used 440,000 Cost of corkboard used $ 1,276,000 Number of labor hours worked 219,000 Direct labor cost $ 1,992,900 Variable overhead cost $ 80,000 Fixed overhead cost $ 58,000 Required:1. Calculate the direct materials price, quantity, and total spending variances for Bullseye.2. Calculate the direct labor rate, efficiency, and total spending variances for Bullseye.3.…
Barley Hopp, Inc., manufactures custom-ordered commemorative beer steins. Its standard cost information follows: Standard Quantity Standard Price (Rate) Standard Unit Cost Direct materials (clay) 1.80 lbs. $ 1.90 per lb. $ 3.42 Direct labor 1.80 hrs. $ 16.00 per hr. 28.80 Variable manufacturing overhead (based on direct labor hours) 1.80 hrs. $ 1.10 per hr. 1.98 Fixed manufacturing overhead ($487,500.00 ÷ 195,000.00 units) 2.50 Barley Hopp had the following actual results last year: Number of units produced and sold 200,000 Number of pounds of clay used 368,200 Cost of clay $ 736,400 Number of labor hours worked 245,000 Direct labor cost $ 5,806,500 Variable overhead cost $ 390,000 Fixed overhead cost $ 470,000 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.…
Bullseye Company manufactures dartboards. Its standard cost information follows: Standard Quantity Standard Price (Rate) Standard Unit Cost Direct materials (cork board) 4.50 sq. ft. $ 2.60 per sq. ft. $ 11.70 Direct labor 1 hrs. $ 10.00 per hr. 10.00 Variable manufacturing overhead (based on direct labor hours) 1 hrs. $ 0.75 per hr. 0.75 Fixed manufacturing overhead ($22,000 ÷ 110,000 units) 0.20 Bullseye has the following actual results for the month of September: Number of units produced and sold 90,000 Number of square feet of corkboard used 420,000 Cost of corkboard used $ 1,134,000 Number of labor hours worked 100,000 Direct labor cost $ 910,000 Variable overhead cost $ 74,000 Fixed overhead cost $ 56,000 Required:1. Calculate the direct materials price, quantity, and total spending variances for Bullseye.2. Calculate the direct labor rate, efficiency, and total spending variances for Bullseye.3. Calculate…
Huron Company produces a commercial cleaning compound known as Zoom. The direct materials anddirect labor standards for one unit of Zoom are given below:Standard Quantity Standard Price Standardor Hours or Rate CostDirect materials ........... 4.6 pounds $2.50 per pound $11.50Direct labor ................. 0.2 hours $12.00 per hour $2.40During the most recent month, the following activity was recorded:a. Twenty thousand pounds of material were purchased at a cost of $2.35 per pound.b. All of the material purchased was used to produce 4,000 units of Zoom.c. 750 hours of direct labor time were recorded at a total labor cost of $10,425.Required:1. Compute the direct materials price and quantity variances for the month.2. Compute the direct labor rate and efficiency variances for the month.
Rip Tide Company manufactures surfboards. Its standard cost information follows: Standard Standard Price Standard Quantity 15 sq. ft. (Rate) Unit Cost Direct materials (fiberglass) $ 75.00 $ 5 per sq. ft. $15 per hr. Direct labor 10 hrs. 150.00 Variable manufacturing overhead (based on direct labor hours) Fixed manufacturing overhead ($24,000 + 300 units) 10 hrs. $ 6 per hr. 60.00 80.00 Rip Tide has the following actual results for the month of June: Number of units produced and sold Number of square feet of fiberglass used Cost of fiberglass used 325 5,050 $28,785 3,190 $49,445 $14,490 $25,250 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 Rip Tide. 2. Calculate the direct labor rate, efficiency, and total spending variances for Rip Tide. 3. Calculate the variable overhead rate, efficiency, and total spending variances for Rip Tide. 4. Calculate the…
Gilder Corporation makes a product with the following standard costs: Standard Quantity or Hours 7.6 grams 0.1 hours 0.1 hours Direct materials. Direct labor. Variable overhead.. Actual direct labor-hours.... Actual cost of raw materials purchases.. Actual direct labor cost.... Actual variable overhead cost. Standard Price or Rate Standard Cost Per Unit $6.00 per gram $16.00 per hour $6.00 per hour The company reported the following results concerning this product in June. Originally budgeted output.. Actual output... 5,400 units 5,500 units 39,200 grams 44,100 grams Raw materials used in production Purchases of raw materials 510 hours $260, 190 $240 U $216 U $240 F $216 F $7,803 $2,754 $45.60 $1.60 $0.60 The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. The variable overhead efficiency variance for June is:
Vitex, Inc. manufactures a popular consumer product and it has provided the following data excerpts from its standard cost system: Inputs (1)StandardQuantityor Hours (2)StandardPriceor Rate StandardCost(1) × (2) Direct materials 6 pounds $3 per pound $ 18.00 Direct labor 0.8 hours $15 per hour 12.00 Variable manufacturing overhead 0.8 hours $3 per hour 2.40 Total standard cost per unit $32.40 TotalStandardCost* Variances Reported Priceor Rate Quantity orEfficiency Direct materials $405,000 $6,900 F $9,000 U Direct labor $ 270,000 $14,550 U $21,000 U Variable manufacturing overhead $54,000 $1,300 F $? U *Applied to Work in Process during the period. The company’s manufacturing overhead cost is applied to production on the basis of direct labor-hours. All of the materials purchased during the period were used in production. Work in process inventories are insignificant and can be ignored. Required: How many units were produced last…
Rip Tide Company manufactures surfboards. Its standard cost information follows: Standard Standard Price Standard Quantity 16.4 sq. ft. $4.5 per sq. ft. (Rate) Unit Cost $ 73.80 Direct materials (fiberglass) Direct labor 9.7 hrs. $ 13 per hr. 126.10 Variable manufacturing overhead (based on direct labor hours) Fixed manufacturing overhead ($34,000 + 265 units) 9.7 hrs. $ 8 per hr. 77.60 128.30 Rip Tide has the following actual results for the month of June: Number of units produced and sold Number of square feet of fiberglass used Cost of fiberglass used 180 5,800 $29,000 1,686 $23,267 $12,645 $28,500 Number of labor hours worked Direct labor cost Variable overhead cost Fixed overhead cost Required: 1 & 2. Prepare the journal entries to record the direct materials, direct labor costs and related variances for Rip Tide. Assume the company purchases direct materials as needed and does not maintain any ending inventories. (If no entry is required for a transaction/event, select "No…
Sit Down, Ltd. is a manufacturer that uses the following standards to produce a single unit of output of their product: Standard input per unit of output Standard price/rate per unit of input Direct materials 7.5 grams (g) $3.00 per g Direct labor 0.75 DL hours $16.50 per DL hour Variable Factory OH 0.75 DL hours $0.75 per DL hour Fixed Factory OH 0.75 DL hours $1.80 per DL hour During the past month, the company purchased and used 165,000 grams of direct materials at a total cost of $453,750 to produce 21,200 units of output. Direct labor costs for the month totaled $228,300 based on 12,720 direct labor hours worked. Variable factory overhead costs incurred totaled $10,100 and fixed factory overhead incurred was $22,500. Based on this information, the direct labor cost variance for the month was: a. $34,050F b. $34,050U c. $18,420U d. $52,470F e. $18,420F
Sit Down, Ltd. is a manufacturer that uses the following standards to produce a single unit of output of their product: Standard input per unit of output Standard price/rate per unit of input Direct materials 7.5 grams (g) $3.00 per g Direct labor 0.75 DL hours $16.50 per DL hour Variable Factory OH 0.75 DL hours $0.75 per DL hour Fixed Factory OH 0.75 DL hours $1.80 per DL hour During the past month, the company purchased and used 165,000 grams of direct materials at a total cost of $453,750 to produce 21,200 units of output. Direct labor costs for the month totaled $228,300 based on 12,720 direct labor hours worked. Variable factory overhead costs incurred totaled $10,100 and fixed factory overhead incurred was $22,500. Based on this information, the direct materials quantity variance for the month was:
Koontz Company manufactures a number of products. The standards relating to one of these products are shown below, along with actual cost data for May. Standard Cost per Unit Actual Cost per Unit Direct materials: Standard: 1.90 feet at $3.00 per foot $ 5.70 Actual: 1.85 feet at $3.40 per foot $ 6.29 Direct labor: Standard: 1.00 hours at $18.00 per hour 18.00 Actual: 1.05 hours at $17.40 per hour 18.27 Variable overhead: Standard: 1.00 hours at $8.00 per hour 8.00 Actual: 1.05 hours at $7.60 per hour 7.98 Total cost per unit $ 31.70 $ 32.54 Excess of actual cost over standard cost per unit $ 0.84 The production superintendent was pleased when he saw this report and commented: “This $0.84 excess cost is well within the 4 percent limit management has set for acceptable variances. It's obvious that there's not much to worry about with this product." Actual production for the month was 15,000 units.…
Parker Plastic, Inc., manufactures plastic mats to use with rolling office chairs. Its standard cost information for last year follows: Standard Quantity Standard Price (Rate) Standard Unit Cost Direct materials (plastic) 11 sq ft. $ 0.73 per sq. ft. $ 8.03 Direct labor 0.25 hr. $ 10.40 per hr. 2.60 Variable manufacturing overhead (based on direct labor hours) 0.25 hr. $ 2.00 per hr. 0.50 Fixed manufacturing overhead ($326,880 ÷ 908,000 units) 0.36 Parker Plastic had the following actual results for the past year: Number of units produced and sold 1,020,000 Number of square feet of plastic used 11,300,000 Cost of plastic purchased and used $ 7,910,000 Number of labor hours worked 306,000 Direct labor cost $ 3,335,400 Variable overhead cost $ 630,000 Fixed overhead cost $ 363,000 Required:Calculate Parker Plastic’s direct labor rate and efficiency variances. (Do not round intermediate calculations. Indicate the…