Saved 9 Required Information Use the following information for the Exercises bel

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Saved 9 Required Information Use the following information for the Exercises below. [The following information applies to the questions displayed below. Hart Company made 4,000 bookshelves using 27,000 board feet of wood costing $297,000. The companys direct materials standards for one bookshelf are 8 board feet of wood at $10.90 per board foot Exercise 8-13 Computation and interpretation of materials variances LO P2 () Compute the direct matertols price and quantity vaniances incurred in manufacturing these bookshelves AQ = Actual Quantity sQ - Standard Quantity AP Actual Price SP-Standard Price ctual

Explanation / Answer

3. Compute the direct materials cost variance, including its price and quantity variances.

Actual Cost Standard Cost AQ AP AQ*AP AQ SP AQ*SP SQ SP SQ*SP 27000 11.00 297000 27000 10.90 294300 32000 10.90 348800 $2700 0 $54500 Material price variance $2700 U Material quantity variance $54500 F Material cost variance $51800 F

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