may someone help me resolve this problem. thank you Computation and interpretati

Question

may someone help me resolve this problem. thank you

Computation and interpretation of materials variances; Materials variances recorded and closed LO P2, P5

[The following information applies to the questions displayed below.]

Hart Company made 3,700 bookshelves using 21,000 board feet of wood costing $268,800. The company's direct materials standards for one bookshelf are 6 board feet of wood at $12.70 per board foot.

References Section BreakComputation and interpretation of materials variances; Materials variances recorded and closed LO P2, P5

Required information Exercise 8-13

(1) Compute the direct materials price and quantity variances incurred in manufacturing these bookshelves.

Explanation / Answer

Material Price and quantity variance are computed as shown below:

Actual 3,700 bookshelves Actual Units Total 3,700 Direct Material 21,000 board feet at 12.8 per board foot 268800 6 board feet at $12.7 per board foot 2,81,940 12.7 per board foot Material Price Variance Actual Price Standard Price AP-SP Actual Quantity Variance (AP-SP)*Actual Qty 12.80 12.7 $0.10 21,000 2,100 U Material Usage Variance Actual Quantity Standard quantity AQ-SQ Standard Price Variance (AQ-SQ)*SP 21000 22,200 -1200 $12.70 -15,240 F Total Direct Material Variance is Actual Cost - Standard Cost Actual Cost Standard Cost 268800 21,000*12.8 $2,81,940 3,700*6*12.7 -13140 F

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