Question

Check my work Hart Company made 5,000 bookshelves using 32,000 board feet of wood costing $384,000. The company's direct materials standards for one bookshelf are 7 board feet of wood at $11.90 per board foot. Part 1 of 2 Exercise 23-13 Computation and interpretation of materials variances LO P2 points AQ = Actual Quantity SQ = Standard Quantity AP = Actual Price SP = Standard Price Skipped (1) Compute the direct materials price and quantity variances incurred in manufacturing these bookshelves. eBook Actual Cost Standard Cost Hint Print $ 0 $ $ 01 0

Answer 1

Actual Quantity= 32,000 board feet

Standard Quantity= 35,000 board feet

Actual Price= 12 $ per board feet

Standard Price= 11.90 $ per board feet

(1) Direct Material Price Variance= (SP- AP) * AQ= (11.90- 12) * 32,000= 3,200 $ Unfavorable

(2) Direct material Quantity Variance= (SQ-AQ) * SR= (35,000 - 32,000) * 11.9= 35,700 $