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

Question

[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.

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.

Exercise 8-13 (1) Compute the direct materials price and quantity variances incurred in manufacturing these bookshelves. Actual Cost Standard Cost

Explanation / Answer

1) Compute direct material price and quantity variance :

Actual cost Standard cost AQ AP AQ*AP AQ SP AQ*SP SQ SP SQ*SP 21000 12.80 268800 21000 12.70 266700 22200 12.70 281940 2100 15240 Direct material price variance 2100 Unfavourable Direct material quantity variance 15240 favourable Direct material cost variance 13140 Favourable

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