[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

Related Questions

Navigate

• Browse (All)
• Browse #
• Subjects

---