PA9-1 (Algo) Calculating Direct Material, Direct Labor, Variable Overhead Variances [LO 9-3, 9-4, 9-5]

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. Calculate the variable overhead rate, efficiency, and total spending variances for Barley Hopp.

direct materials price variance

direct materials quantity variance

direct materials spending variance

direct labor rate variance

direct labor efficiency variance

direct labor spending variance

variable overhead rate variance

variable overhead efficiency variance

variable overhead spending variance