Barley Hopp, Inc., manufactures custom-ordered commemorative beer steins. Its standard cost information follows: Standard Quantity Standard Price
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Question:
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) | 1.7 | lbs. | $ | 1.90 | per lb. | $ | 3.23 | |
| Direct labor | 2.0 | hrs. | $ | 6.00 | per hr. | 12.00 | ||
| Variable manufacturing overhead (based on direct labor hours) | 2.0 | hrs. | $ | 1.20 | per hr. | 2.40 | ||
| Fixed manufacturing overhead ($222,500 ÷ 89,000 units) | 2.50 | |||||||
Barley Hopp had the following actual results last year:
| Number of units produced and sold | 110,000 | |
| Number of pounds of clay used | 110,000 | |
| Cost of clay | $ | 203,500 |
| Number of labor hours worked | 150,000 | |
| Direct labor cost | $ | 434,000 |
| Variable overhead cost | $ | 178,000 |
| Fixed overhead cost | $ | 335,000 |
Prepare the journal entry to record Barley Hopp’s fixed manufacturing overhead costs and related variances for last year.
Expert Answer:
Fixed Overhead Spending Variance Budgeted Fixed Overhead Actual Fixed Overhead 2225... View the full answer
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