Please help. I\'ve been doing the formula over and over but it keeps saying the

Question

Please help. I've been doing the formula over and over but it keeps saying the answer is wrong.

Barley Hopp, Inc., manufactures custom-ordered commemorative beer steins. Its standard cost information follows Direct materials (clay) Direct labor Variable manufacturing overhead (based on direct labor hours) Fixed manufacturing overhead ($250,000.00 ÷ 100,000.00 Standard Quantity 1.50 lbs 1.50 hrs 1.50 hrs Standard Price Rate) S 1.60 per lb. $12.00 per hr S 1.20 per hr Standard Unit Cost 2.40 18.00 1.80 2.50 units) 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 110,000.00 178,200.00 $ 267,300.00 150,000.00 $2,025,000.00 S 200,000.00 $ 270,000.00 3. Calculate the variable overhead rate, efficiency, and total spending variances for Barley Hopp. (Indicate the effect of each variance by selecting "F" for favorable/Overapplied and "U" for unfavorable/underapplied.) Variable Overhead Rate Variance Variable Overhead Efficiency Variance Variable Overhead Spending Variance

Explanation / Answer

Variable overhead rate variance =200000-(150000*1.2)= 20000 U Variable overhead efficiency variance =1.2*(150000-110000*1.5)= 18000 F Variable overhead spending variance = 200000-(110000*1.8)= 2000 U

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