PA9-1 / Calculating Direct Material, Direct Labor, Variable Overhead Variances

Barley Hopp, Inc., manufactures custom-ordered commemorative beer steins. Its standard cost

information follows:

Standard Standard Price Standard Quantity (Rate) Unit Cost Direct materials (clay) 1.5 lbs. $ 1.60 per lb. $ 2.40 Direct labor 1.5 hrs. $12.00 per hr. 18.00 Variable manufacturing overhead 1.5 hrs. $ 1.20 per hr. 1.80 (based on direct labor hours) Fixed manufacturing overhead ($250,000 + 100,000 units) 2.50Number of units produced and sold 110,000 Number of pounds of clay used 178,200 Cost of clay $ 267,300 Number of labor hours worked 150,000 Direct labor cost $2,025,000 Variable overhead cost $ 200,000 Fixed overhead cost $ 270,000