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

Question

[The following information applies to the questions displayed below.) Hart Company made 4,700 bookshelves using 36,000 board feet of wood costing $378,000. The company's direct materials standards for one bookshelf are 8 board feet of wood at $10.40 per board foot. Exercise 8-13 Computation and interpretation of materials variances LO P2 (1) Compute the direct materials price and quantity variances incurred in manufacturing these bookshelves. AQ = Actual Quantity SQ = Standard Quantity AP = Actual Price SP = Standard Price Actual Cost AQ AP AQX SP SQ Standard Cost X X SP X $ 0 $

Explanation / Answer

Material Price variance = Actual Quantity* (Actual Price - Standard Price) Material Price variance = 36,000 * (($378,000/36,000) - $10.40) Material Price variance = $3,600 F Material Quantity variance = Standard Price * (Actual Quantity - Standard Quantity) Material Quantity variance = $10.40 * (36,000 - (4,700*8)) Material Quantity variance = $16,640 F

Related Questions

Navigate

• Browse (All)
• Browse #
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.