Question

Required information Use the following information for the Exercises below. [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 21-13 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 Standard Cost $ 0 $ 0

Answer 1

Direct material variance

Actual Cost								Standard cost
AQ	AP	AQ*AP		AQ	SP	AQ*SP		SQ	SP	SQ*SP
36000	10.50	378000		36000	10.40	374400		37600	10.40	391040
			3600				16640
Direct material price variance				3600	Unfavorable
Direct material quantity variance				16640	Favorable
Total material variance				13040	Favorable